An IMC Campaign for PizzaExpress in Hong Kong...
Transcript of An IMC Campaign for PizzaExpress in Hong Kong...
An IMC Campaign for PizzaExpress
in Hong Kong 2006
NG Tsz Lok
A Project
Submitted
In Partial Fulfillment of the Requirements
For the Degree of
Master of Communication
Supervisor: Mr. Peter LAM
School of Communication
Hong Kong Baptist University
Hong Kong
July 2006
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Acknowledgement
I would like to express my sincere thanks to my dissertation supervisor, Mr. Peter
LAM, for he devoted his valuable time in providing guidance for me to complete this
campaign proposal. His professional opinions enriched the content of this proposal in
theoretical studies, and the situation in the real business. The feasibility of this
proposal is therefore greatly enhanced by his kind helps.
________________________ NG Tsz Lok
M. A. in Comminication School of Communication
Hong Kong Baptist University Date: 3rd July,2006
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Abstract
This proposal presents a new Integrated Marketing Communication (IMC) campaign
of PizzaExpress in Hong Kong. It is an attempt in employing the marketing
communication theories to the real practices. The main theme of this campaign is to
push up the social awareness and create a positive and pizza expert image of
PizzaExpress. The launched period will last until July 2007 starting from August
2006. The key elements of this campaign include advertisings, promotions, PR
activities, and evaluations. More than just a business plan or a communication
campaign, the proposal also gives the critical views on current IMC theories.
A situational analysis about PizzaExpress will following the introductory section and
gives an overview of the catering industry in Hong Kong and the evaluation of
PizzaExpress in Hong Kong. After that, the objects of this campaign will be shown in
chapter 4. Follow is the strategies that will be used in this campaign. The proposal
ends with a budget estimation and a simple conclusion. Some extra, and related
information used in this proposal will be pub in the Appendices section.
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CHAPTER 1. EXECUTIVE SUMMARY....................................................................................... 6
CHAPTER 2. SITUATION ANALYSIS.......................................................................................... 8
2.1. COMPANY ANALYSIS ............................................................................................................. 8
2.1.1. Company Background...................................................................................................... 8
2.1.2. PizzaExpress in Hong Kong............................................................................................. 9
2.1.3. What PizzaExpress Provides.......................................................................................... 10
2.1.4. Pizza Express’s Menu..................................................................................................... 10
2.1.5. Communication Programs of PizzaExpress ................................................................... 10
2.2. CONSUMER ANALYSIS ......................................................................................................... 13
2.2.1. The Target Consumers of the Campaign........................................................................ 13
2.2.2. Eating Habit of Target Consumers................................................................................. 14
2.2.3. Motivation of Eating Outside......................................................................................... 14
2.2.4. Expectations when Eating Outside ................................................................................ 14
2.3. MARKET ANALYSIS ............................................................................................................. 15
2.3.1. Overview of Hong Kong Catering Industry ................................................................... 15
2.3.2. Diversified eating style .................................................................................................. 16
2.4. BRAND ANALYSIS................................................................................................................ 17
2.4.1. Low Brand Awareness in Hong Kong ............................................................................ 18
2.4.2. Perceptions about the Brand.......................................................................................... 18
2.4.3. Catering Services in PizzaExpress................................................................................. 18
2.5. COMPETITIVE ANALYSIS...................................................................................................... 19
2.5.1. Pizza Hut........................................................................................................................ 20
2.5.2. Spaghetti House ............................................................................................................. 21
2.5.3. Pizza Box ....................................................................................................................... 23
2.5.4. California Pizza Kitchen................................................................................................ 24
CHAPTER 3. SWOT ANALYSIS .................................................................................................. 26
3.1. STRENGTHS ......................................................................................................................... 26
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3.2. WEAKNESSES ...................................................................................................................... 26
3.3. OPPORTUNITIES ................................................................................................................... 27
3.4. THREATS ............................................................................................................................. 27
CHAPTER 4. OBJECTIVES ......................................................................................................... 28
4.1. FUNCTION OF SETTING OBJECTIVES ..................................................................................... 28
4.2. THE DAGMAR APPROACH................................................................................................. 28
4.3. OBJECTIVE OF THE CAMPAIGN............................................................................................. 29
4.3.1. Increasing the Recognition Brand Awareness................................................................ 29
4.3.2. Create Brand Attitude .................................................................................................... 29
4.3.3. Increase the Recall Brand Awareness............................................................................ 30
4.3.4. Build up Wild Range of Business Partners .................................................................... 31
CHAPTER 5. INTEGRATED MARKETING COMMUNICATION (IMC) CAMPAIGN
STRATEGY OVERVIEW .................................................................................................................. 33
5.1. IDENTIFYING THE USE OF IMC ............................................................................................ 33
5.2. THE IMC TOOLS USED ........................................................................................................ 34
5.2.1. Advertising..................................................................................................................... 34
5.2.2. Interactive/Internet Marketing....................................................................................... 34
5.2.3. Sales Promotion............................................................................................................. 35
5.3. PUBLICITY AND PUBLIC RELATIONS .................................................................................... 36
CHAPTER 6. ADVERTISING STRATEGIES OVERVIEW ..................................................... 37
6.1. BUS ADVERTISING (CAR BODY, WITH WHEEL).................................................................. 37
6.2. PRINT ADVERTISING .......................................................................................................... 39
CHAPTER 7. INTERACTIVE/INTERNET MARKETING STRATEGIES OVERVIEW ..... 40
7.1. ONLINE MEMBERSHIPS ..................................................................................................... 40
7.2. INFORMATIVE WEB SITE ................................................................................................... 41
7.3. ONLINE FEEDBACK SURVEYS............................................................................................ 42
CHAPTER 8. SALES PROMOTION STRATEGIES OVERVIEW .......................................... 44
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8.1. PROMOTIONAL PROGRAM WITH FITNESS CLUB (TO) ..................................................... 44
8.2. PROMOTIONAL PROGRAM WITH CREDIT CARD COMPANY (TO) .................................... 46
8.3. MONTHLY LUCKY DRAW (CO).......................................................................................... 46
8.4. BIRTHDAY PIZZA (CO)....................................................................................................... 47
8.5. MINI PIZZA BUFFET........................................................................................................... 48
CHAPTER 9. PUBLICITY AND PUBLIC RELATIONS STRATEGIES OVERVIEW.......... 49
9.1. PRESS RELEASE ................................................................................................................. 49
9.2. DONATION .......................................................................................................................... 50
9.3. EVENT SPONSORSHIPS ....................................................................................................... 51
9.4. MEDIAS SPONSORSHIPS ..................................................................................................... 52
9.5. REPAY FOR SUPPORTING SOCIETY (好心有好報) ............................................................. 52
CHAPTER 10. EVALUATION PROGRAM OF THE CAMPAIGN....................................... 54
CHAPTER 11. SCHEDULE AND BUDGETS OF THE CAMPAIGN.................................... 57
11.1. SCHEDULE OF THE CAMPAIGN ............................................................................................. 57
11.2. BUDGETS OF THE CAMPAIGN ............................................................................................... 59
CHAPTER 12. CONCLUSION................................................................................................... 60
REFERENCE ...................................................................................................................................... 61
APPENDICES...................................................................................................................................... 63
APPENDIX 1: ONLINE QUESTIONNAIRE ABOUT PIZZA EXPRESS ......................................................... 63
APPENDIX 2: QUANTITATIVE ANALYSIS ABOUT THE ONLINE SURVEY................................................. 69
APPENDIX 3: PROMOTIONAL MIXED OF PIZZAEXPRESS IN THE PAST 5 YEARS ................................... 73
APPENDIX 4: ADVERTISEMENTS OF THE CAMPAIGN ........................................................................... 74
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Chapter 1. Executive Summary
It is shown in Hong Kong economy yearbook (1999-2003) that the average spending
on eating by Hong Kong people was increasing from 2000-2003. Take 2003 as an
example, with the influence of SARS, the total revenue of catering industry in Hong
Kong was over 48 billions Hong Kong dollars. In the past few years, profit was
recorded in many restaurants, especially the brands which were well operated.
On the other hand, the statue of tradition Chinese food was swayed with the
diversification eating habit of Hong Kong people (Hong Kong economy yearbook,
2003). Hong Kong economy yearbook (2003) illustrated that western style food,
including Italian food, started to dominate the sense of taste of Hong Kong people.
PizzaExpress is a well known chain store in UK. In 2001, the first PizzaExpress outlet
opened in Hong Kong. The brands kept on expanding in the past few years. Recently,
there are total 4 successful outlets in HK. (At least 5-6 branches are under planning in
Hong Kong recently)The restaurant provides Italian food style and perfect decoration
to the customers. Positive comments are always realized (www.yahoo.com.hk, 2006;
www.openrice.com, 2006). Thus, from the sense of finance, reputation and the food
taste, PizzaExpress also shows its strength to competitive with the restaurants in Hong
Kong, especially the Italian restaurants and the brands with chain outlets. To
summarize briefly, it is believed that PizzaExpress, a well organized western style
restaurant is able to survive or even be benefited under these market conditions and its
strength.
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On be half of an advertiser, PizzaExpress is a new challenger in Hong Kong catering
industry which does not have a solid image, and its publicity is not high enough in
Hong Kong. And in financial sense, PizzaExpress is capable to support an IMC
campaign. Under these terms, opportunities and area are given to advertisers to. And it
is trusted that a well planned campaign can support the future expansion of
PizzaExpress in Hong Kong (Hong Kong Trade Development Council, 2006).
In this proposal, a one year IMC campaign of PizzaExpress will be illustrated. Firstly, a
situation analysis of the project will be presented. Then, the strategies used in the
campaign will be discussed in detail with some literary. And lastly, the summary of the
campaign and the future plan after the campaign will be drawn in the conclusion.
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Chapter 2. Situation Analysis
The situation analysis consists of the background information that will be used to
develop the campaign. The information here is well organized, structured, detailed
and focused. As this stage, all information will be divided into separated areas. It
helps to split up the work so that certain areas are not overlooked (Parente, 2004).
2.1. Company Analysis
It is usually more efficient to focus first on the company’s problems and opportunities
because a firm simply may not want to proceed in certain directions, regardless of
what consumers might want. The company analysis will consist of some basic ideas
of what the company is concerned with and what it represents. A good company
analysis provides a benchmark to keep the advertisers fro going off on a tangent,
pursuing opportunities the company will never consider (G. E. Belch & M. A. Belch,
2004)
2.1.1. Company Background
The history of PizzaExpress began in 1948 when company
founder Mr. Peter Boizot MBE tasted his first pizza in
Florence. After returning to London in the 1960s, he realized
the lack of a big name of pizza in UK. The first PizzaExpress
restaurant was then set up in Wardour Street, in London Soho
in 1967. Year after year, more restaurants continued to open to
meet the hunger of Britons, even the people in the world, eager to taste authentic Italian
pizza. PizzaExpress was floated on the London Stock Exchange in February 1993. As
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one of the most successful private restaurant businesses in the world, three years later,
the restaurants, which were franchised, were bought back to give the Company greater
control in ensuring the brand went from strength to strength. This has led to the total of
330 restaurants in the UK and another 42 restaurants in other 13 countries, and it serves
16 million customers a year.
2.1.2. PizzaExpress in Hong Kong
A PizzaExpress franchise owned and operated under license by
PizzaExpress (Hong Kong) Limited. In 2001 Hong Kong's first
PizzaExpress restaurant opened its doors in Central's Soho
district. A year after the restaurant's opening by the escalator in
Soho, director and general manager of PizzaExpress
(Hong Kong) Limited Adrien Ellul planned an aggressive
expansion for the chain in Hong Kong. The gospel of
authentic Italian pizza had spread further with other
branches in Taikoo Shing, in Wan Chai's Three Pacific
Place building and in Tsim Sha Tsui Ashley Road in the past 5 years. And they are all
successful branches, significant profit was recorded. But in this stage, the coming 4-5
years, it is believed that only 5-6 outlets are planning to open (Hong Kong Trade
Development Council, 2006). It may be because of the total number of target
consumer in Hong Kong (adults who enjoy Italian pizza and perfect eating
environment) is limited. Also, the next “station” of PizzaExpress should be the
Mainland China.
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2.1.3. What PizzaExpress Provides
PizzaExpress is the perfect venue where to catch up with friends,
listen to cool jazz, talk business, or celebrate special occasions.
Above all, PizzaExpress is an elegant pizzeria serving the “best
pizza” in Hong Kong.
2.1.4. Pizza Express’s Menu
It is believed that “Pizza” is the main course of PizzaExpress. There are about 20
standard choices of pizza for the customers, which is about 50% of food choice in
PizzaExpress. They are all Italian style pizza (“thin”
pizza) which is made by olive oil, simple ingredients
and special sauces. The prices are around $100 each
(about 30cm diameter). Wines (20 choices, prices
depend on the brand of wine) and Desserts (10 choices,
about $40 -$50 each) are also the recommended specialty of PizzaExpress. Beside
these, the restaurants also provide antipizze (10
choices), insalata (10 choices), pasta (5
choices), and bianche (2 choices). It is
estimated that the average personal spending in
the restaurants is about $100-$120.
2.1.5. Communication Programs of PizzaExpress
In the past 5 years, PizzaExpress communicated with the Hong Kong public mainly
by the following programs:
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Fund Raising Activities
Since 2001 PizzaExpress has supported The Matilda
Sedan Chair Race Charities Fund (MSCRC Fund), who
distributes their donations to needy local charities, by
collecting money on behalf of customers who order the
Soho Pizza. Whenever a customer orders the Soho
Pizza, $5 is donated on their behalf to the MSCRC
Fund. Over the past five years the total has amounted to
more than $140,000. This scheme has proven so
successful that in 2002 PizzaExpress reached out to help the Chi Heng Foundation, a
group that sponsors the education of children in China that have been orphaned by
AIDS by using Peking Duck Pizza. So far, $44,000 has been raised.
School of PizzaExpress
Pupils, mainly below secondary, were
invited to visit the restaurants. During the
visit the pupils were guided by
experienced school leaders through the
running of a modern restaurant. The chefs
of the restaurant then taught them how to
make their own individual pizza. The
whole experience helps to bridge the gap between classroom theories and 'real life' as
the visit touches on subjects such as numeracy, geography, design, hygiene, food
technology, health and safety……
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Recipes from the Kitchen of PizzaExpress
“Recipes from the Kitchen of PizzaExpress” is
a cookbook published by Boxtree and available
at PizzaExpress restaurant for HK$138.
Customers can share the PizzaExpress
experience at home with it. The book shares the
expertise PizzaExpress have built up over the
past four decades, such as demystifying the
pizza-making process, inspiring pasta dishes, healthy salads (and the secret
ingredients of PizzaExpress famous salad), desserts and even wine suggestions to
accompany the meal.
Joint Promotional Programs
Joint promotional program was held
between PizzaExpress and MI Club. MI
Club is a promotion company who provides
an exclusive dining and shopping privilege
to their existing members. Another short
term promotion with Taxi was held in 2003.
The taxi fee, below $50 and the bill is over
$200, would be returned by the restaurant if
the customers travel to the restaurant by taxi.
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Print Advertising
Print advertisings were used in 2003 only. They were
mainly used to support the taxi promotion and the open
of Quarry Bay branch. The advertisements ran 3
months continuously in 1-2 monthly magazine(s). The
content was mainly feature style. It is estimated that
the totally rate is about $120,000. (App. 3)
2.2. Consumer Analysis
In the twenty first century, the marketing and advertising task will be far more
complex and competitive those 10 to 15 years ago. More than ever, marketing and
advertising people need to understand consumers (Engel et. al, 1994). Under
Parente’s (2004) suggestion, the consumer analysis will be divided into the following
5 parts:
2.2.1. The Target Consumers of the Campaign
In this campaign, the target consumer is the group of adult, 18-40, who works, studies,
or lives in the commercial area of Hong Kong. It is because:
ü The age group is chosen because they are the frequent consumers of Hong Kong
restaurants (Hong Kong Catering Industry Association, 2001).
ü From the mini survey, it is find that there is a positive relationship between the
travel habit and the brand awareness of PizzaExpress, x2 (1, N=80) = 7.092, p<0.05,
and the consuming intention to PizzaExpress of consumer, x2 (1, N=80) = 7.092,
p<0.05 (App. 2).
ü In financial sense, the chosen group can financially support themselves to enjoy
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PizzaExpress’ service, which is relatively high.
2.2.2. Eating Habit of Target Consumers
From the research of Hong Kong Catering Industry Association (2001), it was found
that Hong Kong people eat in restaurants (Chinese and non Chinese style, not fast
food shop) 5 times a week. They spend about $500 in the restaurants a week. A
similar result is found in the mini-survey (Appendix 2) of this campaign. 60% of the
target consumers reported that they spend over $80 eating outside 3 times a week. It
was also found in the mini survey that Italian food is in their list during eating outside.
And 80% of the respondents will eat outside with Italian food once a week.
2.2.3. Motivation of Eating Outside
The bright and clear economic condition of Hong Kong stimulated the expenditure of
the consumers. Also, the highly competitive environment of catering industry in Hong
Kong enhanced the quality of food and lowered the price of food in Hong Kong.
Superadding to the huge number and the diversification of the restaurants in Hong
Kong, eating outside may be faster, cheaper, and more convenient for Hong Kong
consumers (Hong Kong economy yearbook, 2000 & 2003). The data in Hong Kong
economy yearbook (2000) also indicated that Hong Kong people are the champion, 3
times of the running up, of eating outside in the world.
2.2.4. Expectations when Eating Outside
It is found in the mini-survey that people were looking for taste of food (100%),
restaurant decoration (100%), eating environment (81%), service quality (76%), and
the location for gathering (55%) when they spent over $80 eating outside. The result
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is much different to that of normal eating condition (without the condition of
spending over $80). In normal situation, quantity of food (79%), taste of food (72%),
fast serving (64%), and eating environment (52%) are the main considerations of the
consumers. From the data above, it is found that the quality of food, eating
environment, service quality and the suitability of being a location of gathering are
the most important considerations when running the restaurants which serve middle
class customers.
2.3. Market Analysis
The basic purpose of the market analysis is to determine the geographic areas that
warrant special attention, either because they are problems or because they are most
likely to respond favorably to the company’s market communication program
(Parente, 2004).
2.3.1. Overview of Hong Kong Catering Industry
The Hong Kong catering industry mainly included Chinese restaurants, non-Chinese
restaurants, and fast food shop (Hong Kong economy yearbook, 2003). With
reference to the data of Hong Kong economy yearbook (2003), at the beginning of
2004, after SARS, there were in total 10,264 restaurants in Hong Kong. 4,380 of them
were Chinese restaurant, 3,389 of them were non-Chinese restaurant, and 1,446 of
them were fast food shop. The industry occupies 167,962 of the Hong Kong labour
force. The total revenue from catering industry was about $4.8 billion. In normal, the
well managed restaurants, especially chain stores, were easier to survive in Hong
Kong.
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2.3.2. Diversified eating style
It was shown in Hong Kong economy yearbook (2003) that western style started to
dominate the catering industry of Hong Kong when compared with the past few years.
It is not a fortuitous result. Many data from the Hong Kong economy can reflect the
trend in an indirect way.
The import rate of rice and olive oil
From the data presented in Hong Kong economy yearbook (2000-2003); it was found
that the total import rate of rice has been decreasing since 1980s. The average intake of
rice, or related product, per person decreases from 78 kg in 1980s to 48 kg 2000s. And
it is believed that the diversification of food in Hong Kong is the main reason of the
decreasing trend (Hong Kong economy yearbook, 2003).
On the other hand, the import rate and selling price of olive oil, one representative of
western style food, keeps on increasing significantly. Eating healthier should be the
main reason for the phenomenon (Hong Kong economy yearbook, 2000-2003).
These statistical data imply that the sense of taste of Hong Kong people is changing, or
changed, from traditional Chinese style to diversification style.
The revenue from catering industry in Hong Kong
After the economy downturn of Hong Kong since 1997, the total revenue from the
catering industry maintains at a certain level, about 5.5 billions Hong Kong dollars.
The totally revenue from Chinese restaurant keeps on dropping from 2001 (3%) to
2002 (8%). The dropping was mainly due to the management strategies of the
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restaurant. Facing the economy downturn, many promotional programs were
implemented. The revenue was then affected. Oppositely, the revenue from other non
Chinese restaurants remained steady under the same economy condition. It is trust that
Chinese style food is not able to full fill the demand of Hong Kong people (Hong Kong
economy yearbook, 2000-2003).
Numbers of restaurants in Hong Kong
From 1999-2002, the total number of Chinese restaurant remained nearly unchanged,
about 4,000. But the number of non-Chinese Restaurant increased continuous in the
period of time. The number increased about 250 per year. Thus the sense of diversified
eating style of Hong Kong people is shown (Hong Kong economy year ook,
2000-2003).
2.4. Brand Analysis
In the brand analysis, the basic questions address how the aspects of the product
match up with consumers’ needs, wants, problems, and interests. Perception can be
more important than reality. It is up to the analyst to determine both what a brand is
and how it is perceived. There is often a difference between the external and internal
perception of the brand. Companies may think they understand how consumers think
and feel about their brand, but testing often proves otherwise (Pink, 1998).
After reference with the result of the mini survey and the online forums
(www.yahoo.com.hk, 2006; www.openrice.com, 2006), the following conclusions
about PizzaExpress can be drawn:
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2.4.1. Low Brand Awareness in Hong Kong
In the mini survey, only 35% of the respondents, target consumers, know
PizzaExpress. And only 50% of them have ever tried PizzaExpress. Haphazardly,
about 70% of them (respondents who know PizzaExpress) work, study, or live in the
commercial area where a PizzaExpress is nearby.
2.4.2. Perceptions about the Brand
It was found that PizzaExpress gives the following perceptions to their customers
(people who know the brand):
ü High class, for adult only
ü Serving “real” Italian pizza.
ü A location for gathering, having fun
ü Comfortable environment
2.4.3. Catering Services in PizzaExpress
The catering services, food quality, eating environment, and services, were widely
praised in online forums, especially the pizzas in the restaurants. Also, in the mini
survey, the rating on the quality of food, eating environment and the services are 4,
4.2, and 4 (out of 5) respectively and most of the respondents in the mini survey
mentions that PizzaExpress can specify itself from other Italian restaurants in Hong
Kong because the food taste and eating environment are totally different with other
Italian restaurants in Hong Kong. So, it is believed that the business style of
PizzaExpress is accepted by the consumers.
On the other hand, many visitors (50% in mini survey) thought that the price of
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PizzaExpress is acceptable. And it would be a more attractive choice if the price can
be lowered. Moreover, take away service with delivery is preferred (mini survey).
2.5. Competitive Analysis
G. E. Belch & M. A. Belch (2004) mentioned that in developing the firm’s marketing
strategies and plans for its products and services, the manager must carefully analyze
the competition to be faced in the marketplace. To begin the competitive analysis,
firstly, it is important to identify the options consumers consider in their purchasing
decisions. These options include buying products that directly compete with each
other in the same generic category and products that only indirectly compete with
each other because they are in different categories (Parente, 2004).
To do a thorough competitive analysis, rival companies of PizzaExpress are
understood in depth. Because of the huge number of indirect competitors, restaurants
in Hong Kong, only direct competitors, some Italian restaurants in Hong Kong, will
be analyzed.
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2.5.1. Pizza Hut
Company Profile
ü Started business in 1958 at USA
ü Branches in over 40 countries
ü In 1981, started business in Hong Kong
ü Franchise store of Jardine Matheson & Co.
ü Over 61 branches in Hong Kong
Positioning in Hong Kong
ü Contemporary casual dining ambience
ü Uncomprising product quality that not only
appeals to consumers' taste, but also to their sight and
smell
ü Maniacal customer service
ü Creative product news
ü Value for money
ü Strengthen our position as a world class food
delivery leader in Hong Kong for pizza centered food
service occasion
Competitive Power
ü Competitive price
ü High level of media coverage
ü Strong financial strength
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ü Variety of food
ü Many branches in Hong Kong
ü Mature delivery services and team
Theme of the Newest
Comm. Program
ü Innovation the New Buzzword at Pizza Hut, 2006
ü Shawn Yu (余文樂), 2006
Comm. Programs have
been held
ü TVC advertising
ü Radio advertising
ü Print Advertising (magazine, wall, and public
vehicles)
ü Charity or educational visits
ü Joint promotion (media, banks, telecom, Hong
Kong Tourism Board and financial group)
ü Web pages
Average Media Spending
per Year ü $820,000,000
2.5.2. Spaghetti House
Company Profile
ü Started business at Hong Kong in 1979
ü a wholly-owned subsidiary of the CAFE DE
CORAL GROUP
ü 25 outlets in Hong Kong
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ü Outlets mainly locate in commercial area
Positioning in Hong Kong ü Variety of food, European style
ü Image of a European casual dining restaurant
Competitive Power
ü High level of media coverage
ü Strong financial strength
ü Variety of food
ü Many outlets in Hong Kong
ü Comfortable decoration of branches
Theme of the Newest
Comm. Program ü Perfect style of spaghetti (意粉教父), 2006
Comm. Programs have
been held
ü TVC advertising
ü Radio advertising
ü Print Advertising (magazine, wall, and public
vehicles)
ü Charity or educational visits
ü Joint promotion (media, banks, Airport Authority
Hong Kong)
ü Online membership and web pages
Average Media Spending
per Year ü $13,000,000
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2.5.3. Pizza Box
Company Profile
ü Started business at Hong Kong in 1985
ü The exclusive franchisee of Domino's Pizza in
Hong Kong & Macau before 2003
ü Launched its own brand and franchise stores in
2003
ü 9 branches in Hong Kong
ü Provide delivery services only
Positioning in Hong Kong
ü Variety of food
ü Reliable delivery services
ü Provide 100% of satisfaction to all stakeholders
Competitive Power
ü Competitive price
ü Mature delivery service
ü Refreshment services
Theme of the Newest
Comm. Program
ü Delivery Expert, since 1985
Comm. Programs have
been held
ü Print Advertising (magazine, wall, and public
vehicles)
ü Charity or educational visits
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ü Joint promotion (media, hotel groups, and
catering groups)
ü Web pages
Average Media Spending
per Year ü $800,000
2.5.4. California Pizza Kitchen
Company Profile
ü Started business at USA in 1985
ü 180 branches in 27 states
ü Started business at Hong Kong in 2003
ü Launches its own franchise stores
ü 3 branches in Hong Kong
Positioning in Hong Kong ü Variety of food, American style
ü Creative design of food
Competitive Power
ü Creative design of food
ü Variety of food
Theme of the Newest
Comm. Program
ü 只有感受,才能享受!, 2006
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Comm. Programs have
been held
ü Print Advertising (magazine, and wall)
ü Charity or educational visits
ü Fund raising
ü (Joint) promotion (media)
ü Web pages
Average Media Spending
per Year ü $210,000
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Chapter 3. SWOT Analysis
SWOT is a common way to process the information we collect. It emphasis is often
on the company. Typically, there are 4 major sections in a SWOT analysis: Strengths,
Weaknesses, Opportunities, and Threats (Parente, 2004). Strengths are firm’s
resources and capabilities that can be used a basis for developing a competitive
advantage. Weaknesses can be treated as the absence of certain strengths.
Opportunities refer to the new opportunities for profit and growth from the external
environment. And threats are presented from the changes in the external environment.
A SWOT analysis of PizzaExpress Hong Kong Limited will be drawn in this part.
3.1. Strengths
ü The food is being praised by the customers
ü After five years of operation, a better understanding of Hong Kong consumers
ü A worldwide brand and listed company
ü Unique food, especially pizza
ü Provide alcohol drinks
ü Financial strengths of expanding business
3.2. Weaknesses
ü The price is comparatively high
ü Lack of business partners, such as media groups, financial group….. in Hong
Kong
ü Lack of branches in Hong Kong
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ü Delivery service is not perfect
ü Brand awareness in Hong Kong is low
ü Not a member of local catering group
3.3. Opportunities
ü Market information can be obtained easily
ü Well developed information technology
ü Diversified eating habit of Hong Kong people
ü Hong Kong people always eat outside
ü Hong Kong people are willing to spend more on high quality food
ü Eating environment is the consideration of Hong Kong consumers
ü Italian restaurants are listed by Hong Kong consumers
3.4. Threats
ü The market trend can be changed easily
ü Diversified eating habit of Hong Kong people
ü High level of competitions, primary (Italian restaurants) and secondary (other
restaurants)
ü The prices of rental, material, advertising…... in Hong Kong are high
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Chapter 4. Objectives
4.1. Function of setting objectives
An objective is the desired end of an action what one expects to accomplish (Parente,
2004). With reference to Aaker et al. (1992), it was found that objectives serve several
functions in modern management. One function is to operate as communication and
coordination devices between the client, the agency account executive, the creative
team, copywriters, radio specialists, media buyers and the research specialists.
Secondly, objectives provide a criterion for decision making. If 2 alternative
campaigns are generated, one must be selected. Rather than relying on an executive’s
esthetic judgment, he or should be able to turn to the objective and select the criterion
that will most readily achieve it. And lastly, setting objectives make the campaign
evaluative. At the end of the campaign, that pre-selected measure is employed to
evaluate the success of the campaign and such success is increasingly how
advertising agencies are getting compensated.
4.2. The DAGMAR Approach
The approach, DAGMAR, in advertising with communication task is applied during
setting the communication objectives of this campaign (Aaker et.al 1992; Parente,
2004). In Parente (2004)’s explanation on DAGMAR approach, there are totally 5
steps in the approach. They are: Unawareness à Awareness à Comprehension and
Image à Attitude à Action. They discuss psychological constructs which exist
within consumer’s minds. And it is suggested the brand or the organization have to
climb these steps, so that the acceptance from the public can be gained through
communication task. Many worked examples, especially the brands with low brand
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awareness, of DAGMAR approach were found in Aaker et.al’s (1992) findings.
4.3. Objective of the Campaign
With reference to the DAGMAR approach, 4 ordered objectives are set:
4.3.1. Increasing the Recognition Brand Awareness
Recognition brand awareness is when the awareness of the brand reminds you of the
category need (Elliott & Percy, 2005). In simply, you see the package or related visual
elements, and recognize the brand. Elliott & Percy (2005) explained that the reason
for selecting brand recognition as a communication objective is that consumers buy
the brand because they recognize it at the point of purchase.
It was found in the mini survey that the recognition or even the visual brand
awareness of PizzaExpress in Hong Kong was relatively low within the target
consumers group. In order to increase the purchase intention of the target consumers,
it is needed to increase the (visual) recognition brand awareness of the brand in Hong
Kong (Elliott & Percy, 2005). And it is trusted that, after the one year campaign, the
recognition brand awareness of PizzaExpress will be increased from 35% (from
mini survey) to 60%.
4.3.2. Create Brand Attitude
Besides the brand awareness, brand attitude must always be a communication
objective. If there is no brand attitude present among the targets consumers, there is
very likelihood it will want to buy the brand, since there must be something about the
brands that lead a person to purchase one rather than another (Elliott & Percy, 2005).
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Ajzen & Fishbein (1975) treated brand attitudes as the understanding a person in
terms of how he evaluates a particular brand and its ability to satisfy what the
consumer is looking for in the brand. And they divided the brand attitudes into 4 main
elements. They are motivation that drives someone’s behavior, brief of the brand,
cognitive and affective components of the brands, other briefs (emotional) about the
brands/ products, and the relative concept of the brand.
With reference to the data from the mini survey and the web, the strongest brand
attitudes are the taste of the pizza of the brands, and the decoration of the restaurants.
In this campaign, the sense will be consolidated. Also, the sense of environmental
friendly and being the citizen of Hong Kong would be introduced since these themes
enhances the positive image of the brand (G. E. Belch & M. A. Belch, 2004). In
concluded, the following brand attitudes would be introduced in the campaign:
ü Pizza Expert
ü Perfect Gathering Venue
ü Environmental Friendly
ü Be a Hong Kong Citizen
4.3.3. Increase the Recall Brand Awareness
“Recall brand awareness is when the category need occurs and you must
remember brands that will satisfy that need. When recall awareness is
required, the brand is not present.” (Elliott & Percy, 2005)
Elliott & Percy (2005) also stated that the first recalled brands will usually get the
business, because if the brands are not in customers’ list, it has very little
likelihood of being purchased. They explained the motivation (the principle of
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memory) begins with the psychological principle Encoding Specificity, by the
psychologist Endell Tulving. Tulving (1983) described the principle that,
something to be retrieved from human’s memory, there must be a match or a
linked between the information encoded at the time of learning and the
information available when it is retrieved from his memory. Of course, the
principle is also at work with recognition brand awareness (Elliott & Percy,
2005).
From the mini survey, the recall brand awareness is relatively low when
comparing with its competitors, Pizza Hut, Pizza Express, and Spaghetti House.
Only 5% of respondent can recall the brand (Question 9). In order to coordinate
the confirmed future expands of the brand in Hong Kong, it is essential to
increase the recall brand awareness, so that the purchase power of the customers
on the brand can be increased. Under estimation, it is believed that the recall
brand awareness will be increased to 50% within the target group of
customers.
4.3.4. Build up Wild Range of Business Partners
Joint promotion enhances obtaining distribution and support fro new products,
maintain support for established products, and gain a priority for certain brands in
terms of display support, shelf position and advertising and other promotional
support (Parente, 2004).
To make the budget used more effectively, several joint promotion programs will
be held in the campaign. The financial group, keep fit center and some
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restaurants would be chosen as the joint target. The joint experience enhances
the future development of the brand in the future since a brand cannot survive by
its own. The relationships with its various constituencies and publics carry a more
important role of a business (Parente, 2004).
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Chapter 5. Integrated Marketing Communication (IMC) Campaign
Strategy Overview
5.1. Identifying the use of IMC
G. E. Belch & M. A. Belch (2004) mentioned that, in the past few centuries,
mass-media dominated the promotional function in most companies. However, many
companies started to recognize the importance of IMC. They also illustrated several
number of factors underlie the move toward IMC by the markets, as well as the
advertising or marketing agencies. And they explained the trend is mainly based on
the rapid changing environment with respect to consumers, technology, and media.
And with reference to Parente (2004), IMC is a management concept that is designed
to make all aspects of marketing communication such as advertising, sales promotion,
public relations, and direct marketing work together as a unified force, rather than
permitting each to work in isolation. This approach seeks to have the company’s
entire marketing and promotional activities project a consistent, unified image to the
marketplace. Also, it also helps the companies identifying, communicating and
building relationships with their customers as well as other stakeholders such as
employees, suppliers, investors, interest groups and the general public. According to
G. E. Belch & M. A. Belch (2004), there are total six tools in IMC. They are:
ü Advertising
ü Direct Marketing
ü Interactive/Internet Marketing
ü Sales Promotion
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ü Publicity/Public Relations
ü Personal Selling
5.2. The IMC Tools Used
In this campaign, bases on the brand’s category, only Advertising, Interactive/Internet
Marketing, Sales Promotion and Publicity/Public Relations strategies would be used.
5.2.1. Advertising
Advertising was defined as the non-personal
presentation of the most persuasive possible
selling message to the right prospects for the
product or service by identified sponsor
(Jefkins, 1994).With the combination of
creativity, marketing research and economic media buying, advertising can achieve
the desired results within an acceptable budget. Many advertisings campaign cost
millions of pounds, but that relates to the size of the market and the volume of sales
required maintaining constant output of a factory’s production capacity (Jefkins,
1994).
5.2.2. Interactive/Internet Marketing
Interactive/Internet Marketing is a two-way communication
process in nature. It allows a back-and-forth flow of
information whereby users can participate in and modify the
form and content of the information they receive in real time.
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The advances in technology and the developments have led the communication
through interactive media. Usually, the interactive media includes Internet,
CD-ROMs, kiosks, television…… (G. E. Belch & M. A. Belch, 2004)
5.2.3. Sales Promotion
G. E. Belch & M. A. Belch (2004) defined sales
promotion as the marketing activities which provide
extra value or incentives to the sales force, the
distributors, or the ultimate consumer and the sales
can be stimulated immediately. With reference to their findings, there are 2 main
categories of sales promotion. They are Customer-Oriented (CO) and Trade-Oriented
(TO).
They mentioned that CO is targeted to the ultimate
users of services or products. And the strategy, such as,
coupon, sampling, premiums, rebates, contests,
sweepstakes… enhances the immediate purchase
power of consumers and, thus, the short term sales can
be stimulated. For the TO sales promotion, the main
target is the marketing intermediaries, such as
wholesalers, distributors, retailers…In this sense,
promotional and merchandising allowances, price deals, sales contests… would be
used as tools, so that the sales of both parties can be increased.
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5.3. Publicity and Public Relations
Publicity referred to non-personal communications regarding an organization product,
services, or idea not directly paid for or run
under identified sponsorship. It normally
comes in the form of news story, editorial, or
announcement about an organization and/or its
products and services by releasing news,
holding press conferences, publishing feature articles and photographs…… (G. E.
Belch & M. A. Belch, 2004)
According to G. E. Belch & M. A. Belch (2004), public relations usually has a
broader objective than publicity, and it was defined as the management function
which measures the public attitudes, identifies the policies and procedures of the
organizations with reference to the public interest, and relative program of action to
earn public understanding and acceptance would
be held. From their findings, in normal, public
relations will be presented in the form of special
publications, participation of community
activities, fund-raising, and sponsorship of
events……As a result the image of the organization can be created, and reinforced.
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Chapter 6. Advertising Strategies Overview
With reference to the internal strength of PizzaExpress, it is trusted that the direct
promotional budget of the company is limited. As a result, in this campaign,
advertising will not be used widely, since the advertising fee in Hong Kong is
relatively expensive when compare with other countries.
In this campaign, advertising (not include the joint promotional program) are mainly
used to create the recognition brand awareness of the public and push up the visiting
rate of the PizzaExpress web site.
6.1. Bus Advertising (Car body, with wheel)
According to Elliott and Percy (2004),
when recognition brand awareness is the
communication objective, the good visual
content is more important than the time
for processing. They also mentioned that
the exposure of the advertisements should
be appeared as closely as possible to point of purchase. And it is a good way to
create social awareness by big pictures. Also, Parente (2004) stated that an
attention-getting device can make the advertisements more memorable. With these
senses, bus, one of the most popular public transportation, is chosen as the
advertising media, attention-getting device, in the campaign since media exposure of
the advertising can be maintained by its points of arrival in commercial area. It is
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trusted that social impact can be created if innovative design is used. Also, the
comparatively lower cost. The high media cost is also the barrier of choosing other
media.
Intention
ü Create recognition brand awareness of PizzaExpress within the
target group
ü Bring out brand attitude – PizzaExpress = Pizza Expert
ü Enhances the visiting rate of the web site
Message (s)
ü PizzaExpress logo
ü PizzaExpress Web page address
ü PizzaExpert
Activity (s) ü Bus body (with wheels) advertising will be used
Tactic (s)
ü Wheels will be used as the advertising media which is a new
media in Hong Kong and it is physically possible
ü To keep the sense of innovative, only 3 months of
advertisement will be placed and it is trusted that the target
recognition brand awareness rate can be reached after these 3
months
ü Pizza and the brand logo would be the main visual content of
the advertisement
ü Advertising will be focused on Hong Kong Island, since most
of the PizzaExpress outlets located in Hong Kong Island
ü Advertisements will be put on 30 buses, 10 cross harbour and
20 Hong Kong Island
ü The recognition brand awareness will be evaluated after 3
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months. If the effect is significant, Kowloon buses would be used
also (coordinate with the business expands of PizzaExpress).
6.2. Print Advertising
Print advertising is only used to support the promotional program, since the print
media is expensive. Also, print media can reach the target group, especially small
group, more effectively (Reid and King, 2005).
Intention ü Push up the sales of the company within the period
Message (s) ü Basic information of the activities
ü Bring out the main theme of the activities
Activity (s) ü Advertisements will be put in publish medias
ü Poster at restaurants and business partners’ shops
Tactic (s)
ü 2 monthly magazines (used before) will be selected: Hong
Kong Magazine & Hong Kong Business
ü 1 page of advertisement will be put in magazines within the
month of the activities
ü For TO promotional programs, sharing of media spending
would be applied
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Chapter 7. Interactive/Internet Marketing Strategies Overview
The recent web site of PizzaExpress is an informative web site. It provides the basic
information of the company, such as the history, and the menu…… No interactive
function can be found in the web page.
In this campaign, the function of the web pages will be modified. More interactive
functions will be implemented into the web page. These functions would be mainly
used to support the memberships, promotional programs, feedback collections, and
image reinforcement of PizzaExpress.
7.1. Online Memberships
Memberships program, not online based, was held in the previous years. It is trusted
that the company did communicate with its members regularly. The function of the
membership club is to retain the customers and at the same time, educate them to become the
PizzaExpress fan. It is important for a company to contact the customers directly. In this
sense, a 2 way communication channel has to be established (G. E. Belch & M. A. Belch,
2004).
In this campaign, the membership will be modified to an online membership.
Convenience for joining can be provided if online based program is used. Also, the
online function helps to collect or spread the information faster, more directly and
more environmental friendy.
Intention ü Build up an effective 2 way communication channels to
PizzaExpress customers
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ü Build up a pool of regular customers who are willing to
participate the activities which are organized by the company, such
as focus group discussion, taste testing……
Message (s) ü A fun and worthy membership
Activity (s) ü Online application
Tactic (s)
ü Target to adults only
ü Monthly newsletter will be sent to all members by e mail
ü 10% off for all members
ü Qualify to fill in some surveys (to gain more special offers)
ü Qualify for joining some member based promotional programs
and PR activities (will be discussed later)
7.2. Informative Web Site
G. E. Belch & M. A. Belch (2004) mentioned that an attractive web site should be
creative, effective marketing and continual updated, otherwise, visitors would not go
to the website frequently.
As shown in PizzaExpress web site, only the
basic information of the company is
demonstrated. No marketing information and
up-to-dated information about the company are
shown. So it is planned that the web site will
be upgraded and updated frequently.
Intention ü Support all marketing, and PR activities
ü Maintain the visiting rate of the web site
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Message (s) ü Up-to-dated information about the information
Activity (s) ü Frequent updating of the web site
Tactic (s) ü All promotional information will be posted
ü More press releases will be pasted
7.3. Online Feedback Surveys
Creating a valuable campaign is very important for campaign
practitioners. The feedbacks enhance the improvements of
future campaign. Also, for catering industry, the business is
highly relies on its services, including food, so feedbacks
collection from the customers is encouraged (Paisley, 2000).
Intention ü Feedbacks of different activities and the services of the
restaurants can be abundantly collects
Message (s) ü Get fun for giving feedbacks
Activity (s)
ü Feedbacks corners is created on the web site
ü Special coupons will be given to the feedback collections
participants
Tactic (s)
ü Promote the feedback collection in the restaurants or through
email for the members
ü Different coupons will be given to different feedbacks
collection participants
ü In order to create the sense of dignity of the membership, more
discount will be given to the participated members
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ü Members will be invited to join some focus group discussions
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Chapter 8. Sales Promotion Strategies Overview
G. E. Belch & M. A. Belch (2004) illustrated that over the past decade, marketers have
been allocating more of their efforts to sales promotion. And they had found that a
steady increase in the use of sales promotion techniques to influence consumers’
purchase behavior. In this campaign, also, Sales promotion strategies, TO and CO,
will be widely used.
Besides pushing up the sales of the restaurants, the sales promotion strategies also
build up business relationships between PizzaExpress and other company, encourage
trial in PizzaExpress and gain cheaper (or even free) media exposures (G. E. Belch &
M. A. Belch, 2004).
8.1. Promotional Program with Fitness Club (TO)
1 Fitness Club, such as California, Physical… in Hong Kong will be invited to join
the promotional program. Fitness club is chosen because:
i. Target to same group of customers
Fitness clubs target to the group who can financially support themselves
(Average spending per month is ~$450). And with
reference to the location of the fitness clubs, it is trusted
that the group in the commercial area is also their target
customers.
On the other hand, from the result of the mini survey, the
intention of joining the fitness club is high (70%) within
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the target age group of customers was shown. The main purchasing barrier of
the group is only the high monthly fee of the fitness club.
ii. Promote the Less-Heavy Pizza Image
It was proved that the PizzaExpress’s pizzas are
comparatively low calorie content. By using the
business positioning of the fitness club (Healthy),
the sense of less heavy pizza will be promoted.
Intention
ü Push up the sales (including trial) of both companies
ü Increase the recognition brand awareness within the target
group
ü Create the less-heavy pizza image
ü Increase the number of member in both companies
Message (s) ü Keep fit with delicious
Activity (s) ü Allowances will be given to companies visitors
Tactic (s)
ü 5% change of each meal in PizzaExpress will be directly used
to compensate the monthly fee in the fitness clubs. (Max. $80 per
month)
ü Only PizzaExpress member can enjoy the joint promotion
ü The fitness club is responsible for all (or at least 70%) media
spending of the program
ü More club will be cooperated if positive result is gained in this
program
ü Posters will be put in PizzaExpress restaurants
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8.2. Promotional Program with Credit Card Company (TO)
All card users are the group with (or potentially
with) stable income. The target customers of
PizzaExpress are included in this group also. So it is
valuable to cooperate with card company.
Moreover, the advertising spending can be well control since the spending is based
on the sales of company (in most case).
Intention
ü Push up the sales of the companies
ü Increase the recognition brand awareness within the target
group
Message (s) ü Using credit card in PizzaExpress, you will have discount
Activity (s) ü Providing discount to card user
Tactic (s)
ü 15% off discount will be provide to the card users
ü Steady media coverage should be provided by the card
company (corresponding to steady business of PizzaExpress)
ü Related notices will be put in PizzaExpress restaurants
8.3. Monthly Lucky Draw (CO)
It is the activity for PizzaExpress member only. The membership
based activities can enhance the dignity of the membership.
Also, the monthly newsletter will be checked more detail by the
customers since premium will be provided (Jefkins, 1994).
Since the prizes is the food of PizzaExpress, it is trusted that this
scheme will push up the sales, or even the whole business of the company although
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the relative spending on the prizes is high (Jefkins, 1994).
Intention
ü Increasing the reading rate of the monthly newsletter
ü Increase the sales of the company
ü Create the sense of Pizza Expert
Message (s) ü Answer a simple question to win a free pizza
Activity (s) ü Promote the lucky draw by monthly newsletter
Tactic (s)
ü Members will be ask to answer a simple question about the
content of newsletter for joining the monthly lucky draw
ü All participants will receive a free soft drink in the month
ü A free pizza will be given to the lucky draw winners
ü 10% of the participants will be selected as the winners each
month
ü Promotional advertising will be put in PizzaExpress web page
8.4. Birthday Pizza (CO)
Celebration of birthday always holds in restaurant. Such
type of celebrating activities is surely welcome in
PizzaExpress. To show the sense of welcoming, Birthday
Pizza Program will be held.
Intention ü Create the image – PizzaExpress is a place for celebrating
Message (s) ü Having fun in Birthday
Activity (s) ü Free food will be given to the customers
Tactic (s) ü 1 free pizza will be given to each birthday person
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ü 1 free soft drink will be given to each participants of the
“party”
ü Promotional advertising will be put in homepages and monthly
newsletter
ü Notice will be put in PizzaExpress restaurants
8.5. Mini Pizza Buffet
Event marketing is a type of promotion where a themed
activity is developed for the purpose of creating
experiences for consumers and promoting a product as
well as service (G. E. Belch & M. A. Belch, 2004).
The Mini Pizza buffer is a short term (23 and 24 of Dec.)
promotional program. It will only be organized again if positive feedbacks are
obtained.
Intention
ü Create the image of pizza expert
ü Push up the sales of company during Christmas
ü Develop the diversify of the business
ü Create the image of celebrating
Message (s) ü Having party in PizzaExpress
Activity (s) ü Buffet in the restaurant during Christmas
Tactic (s)
ü Advertising will be put in magazines
ü Discount will be given to early booking customers
ü Pizza, mini in size, will be treat as the main source of the buffet
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Chapter 9. Publicity and Public Relations Strategies Overview
Publicity takes a reactive role in the market communication program. It involves
elements which are controllable (Press release and the management of information)
and uncontrollable (information from the media). Bu using publicity, credibility, news
value, significant word-of-month communications, and a perception of being
endorsed by the media would be gained (G. E. Belch & M. A. Belch, 2004).
G. E. Belch & M. A. Belch (2004) proved that the role of public relations is becoming
more and more important in many organizations. And they also found that public
relations is always treated as the supporting system/department in an organization by
providing a value-added customer service, building brand-to-customer bonds,
increasing the credibility of the company, and building the image of the organization.
9.1. Press Release
Press Release from PizzaExpress in magazines and newspaper would be used as the
supporting media of some PR activities.
With reference to Jefkins (1994), Press release can create in-depth coverage and
permanence which are not easily found in radio or television advertising. Also, the
press release can cover various subjects, including some statistic information which
can show the success of the company in certain extents.
On the other hand, all releases will be put in specific publish medias since wastage
would be found if the idea of the advertising can not reach to the target group
effectively (Reid and King, 2005).
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Intention
ü Support the PR activities
ü Gain public awareness
ü Create the brand images
Message (s)
ü Detail explanations of the activities
ü Bring out the main theme of the activities
ü Future plan of the company
Activity (s) ü Advertising with feature article will be put in publish media.
Tactic (s)
ü Advertising will be put as soon as possible after each activities
ü 2 monthly magazines (used before) will be selected: Hong
Kong Magazine & Hong Kong Business
ü 2 pages of spacing will be bought after the month of the
activities
9.2. Donation
Being the citizen of Hong Kong, and profitable
company in Hong Kong, it is need to support the
charity groups, so that positive image and some free
media can be gained.
Intention
ü Gain public awareness and positive image
ü Gain free media
ü Push up the sales of pizza
Message (s) ü Buying pizza to help the charity groups
Activity (s) ü Donation to charity groups seasonally
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Tactic (s)
ü $5 from the charge of meal will be donated to charity groups
for every pizza order
ü Half of the services change will be put into the fund of
PizzaExpress, which is used to sponsor the charity activities
9.3. Event Sponsorships
Many marketers are attracted to event sponsorship because it gets their company
name in front of consumers, focus to the target segments, and support promotional
programs (G. E. Belch & M. A. Belch, 2004).
Intention
ü Create positive image of the company
ü Build up positive relationships with different parties
ü Gain free media
ü Build up the diversity business
Message (s) ü PizzaExpress always support charity
ü PizzaExpress always support having fun during meal
Activity (s) ü Sponsor the catering service of activities
ü Sponsor the spending of the activities
Tactic (s)
ü Cooperate with the charity groups to organize charity activities,
such as some visiting, tree planting…
ü Sponsor some parties in charity groups, such as birthday party
in orphanages, parties in social services centers…
ü Sponsor the catering service of other organization’s charity
activities or parties (Especially the media group)
ü At lease 6 events will be sponsored to charity groups, 6 events
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will be sponsored to other organizations
9.4. Medias Sponsorships
To show the image of Pizza Expert, the “Kitchen
Corner” of Headline Daily (part of main content)
will be sponsored Headline Daily is chosen
because its distributing points are mostly in
commercial area which can reach to the target
customers of PizzaExpress more effectively.
Also, sponsor the main content is cheaper than pasting the advertisements in the
media (with reference to the rate card of the media).
Intention ü Create the image of pizza expert
Message (s) ü Cook teaching
Activity (s) ü Sponsor the main content of the newspaper
Tactic (s)
ü Sponsor the Kitchen Corner every 2 weeks
ü Steps for cooking Italian food, mainly pizza, will be put in the
corner
ü Some information about Italian food, such as the gradients,
history…will be put in the corner
9.5. Repay for Supporting society (好心有好報)
Support to the charity should be praised. The program is used to support the sense.
Intention ü Create positive image of the company
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ü Create social awareness
Message (s) ü Repay for Supporting Charity (好心有好報)
Activity (s) ü Giving prizes, soft drinks, to the customers
Tactic (s)
ü A free drink will be given to the customers who can show the
sense of support the society
ü Supporting the society include: flag buying, using own
shopping bags, using handkerchiefs, recycling……
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Chapter 10. Evaluation Program of the Campaign
Evaluation is the critical factor in marketing success. It gives business some means of
control over the tremendous sums of money spent on marketing communications.
Also, a thorough and accurate evaluation strengthens the morale of the internal and
external people working on the campaign (Burneet, 1993).
According to Parente (2004), there are 4 (at least) stages of a campaign during which
it is common to use some type of evaluative testing. These concepts will be applied
into this campaign also.
i. At the beginning of the creative process (Concept Testing)
The testing is designed to estimate (not evaluate) the effectiveness of the strategies.
The testing tends to somewhat exploratory in nature, although tentative ideas and
concepts have been developed, such as the product names, slogans, campaign
themes……The information obtained from the testing is generally used to firm up
message strategies and the next step in the campaign is to execute the strategies. In
this campaign, focus groups discussion and one-on-one interviews will be held on
before the execution of the strategies. In order to save the budgets, and make an
accurate results, concept test for each elements of the campaign will be held
frequently when the memberships of PizzaExpress is built up.
ii. In the middle and at the end of the creative process (copy testing)
Copy testing is used to predict the effectiveness of an advertisement or a campaign. It
also helps understanding the advertisement or campaign so it can be developed
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further. In most case, in this campaign also, focus group discussion will be held when
all the idea and visual elements are built up.
iii. While the advertising is appearing in the media (concurrent testing)
There are two basic types: tracking studies, and coincidental studies. Tracking studies
are often the major part of concurrent testing, or even in marketing communication
campaign, in this campaign also. Tracking studies work best when they are part of an
ongoing information-gathering system. The basic idea behind tracking is to keep in
close contact with what consumers are thinking, feeling, and doing. Usually,
awareness, attitude, communication playback, reported product usage, and product
satisfaction are usually the information that the companies interested in. On the other
hand, coincidental studies are designed to evaluate advertising and media usage by
using some simple interviews or survey.
Since the web site of PizzaExpress will be well developed, the concurrent testing will
be mainly carried out by internet. Also, feedback forms will be collected in
PizzaExpress restaurants. But it is not encouraged, since disturbance will be caused to
the customers.
iv. After the advertising/campaign has appeared in the public (posttesting)
It is important for the companies to have a thorough understanding of which aspects
of the campaign have gone well, which should be replaced or improved, and which
should be avoided in the future. These understandings extend to the people working
on the campaign. Recognition, recall, attitudes and awareness, sales, and enquiries are
always evaluated in posttesting.
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The 4 elements mentioned above will be tested after the campaign, especially the
recognition, recall, and the awareness, which are the main objectives of the campaign.
They will be tested and measured by using survey, and some experimental testings.
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Chapter 11. Schedule and Budgets of the Campaign
11.1. Schedule of the Campaign
The campaign will last for 1 year. It will be started from August 2006 to July 2007.
The first 2 months will be used for preparation. The most important work in this stage
is to build up an attractive and functional web site of PizzaExpress, since the tactics
(marketing or evualations) are highly relied on the web site. Also it is also very
important to have a copy testing to test about the effectiveness of the advertising
strategies because in this campaign, one of the most expensive spending is the media.
After the preparation stage, all tactics mentioned in the previous chapters will be held
with the reference to the DAGMAR Approach, which had been discussed in chapter 4
of the proposal. In most period, the elements will be held in the same time and
support each other. And for some short term strategies, if the positive result is
significantly shown in the posttest followed, the strategies would be repeated in the
later stage. The detailed scheduling of the campaign will be presented by the
following charts
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An IMC campaign for Pizza Express in Hong Kong 2006
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11.2. Budgets of the Campaign
It is estimated that the campaign cost about 1.5 million Hong Kong dollars, and half
of the cost is based on the sales of the company. The detail of the cost will be
presented in the following table.
Item Unit Price Duration Frequency
(per month)
Total Price
Bus Advertising (Island) $2,500/month 3 months 20 $150,000
Bus Advertising (Cross Harbour) $4,000/month 3 months 10 $120,000
Print advertising $35,000/time 1 month 7 $245,000 Web site build up
(include membership maintain)
$150,000 / / $150,000
Promotion with Fitness club $80 7 months 500 $280,000
Promotion with Card Company $100,000/year 7 months / $100,000
Birthday Pizza $100/time 10 months 15 $15,000 Donation $5/pizza 10months 10000 $50,000
Events Sponsor $100,000 / 12 $120,000 Media Sponsor $5,000 10 months 4 $200,000
Repay for Supporting society (好心有好報) $5 12 months 300 $18,000
Total: $1,448,000 Table 11.b: Budgets of the campaign
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Chapter 12. Conclusion
PizzaExpress has entered the Hong Kong market for about 5 years. However, keen
competitions rise by the competitors, so the competitive power of PizzaExpress
became low and forces PizzaExpress to be outstanding.
It is found that Hong Kong customers do not perceive a clear image towards
PizzaExpress. It is time for PizzaExpress to re-establish its position in the market and
reinforce its solid image towards consumers.
With the analysis of situation, demarcation of the problems and opportunities, target
market and objectives, a whole set of 1 year integrated marketing communication
strategy of 2006 -2207, such as advertising and public relations strategies, are designed
for addressing the target markets of the PizzaExpress. It is expected that after launching
of campaign and with the campaign evaluation, the campaign objectives are found to
be obtained successfully, with the raise of awareness of the company, the attitudes and
perception of consumers will be changed to positive and also the key message
PizzaExpress = Pizza Expert is built in all consumers’ mind.
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Reference
A market hungry for brand-name pizza (2005). Retrieved July 1 2006, from Hong
Kong Trade Development Council database.
Aaker, D.A., Batra, R. & Myers, J.G. (1992). Advertising Management (4th Edition).
New Jersey: Prentice-Hall Internation, Inc.
Ajizen, I. & Fishbein, M. (1975). Belief, Attitude, Intention, and Behavior: An
Introduction to Theory and Research. Reading, Mass: Addison-Wesley
Belch, G.E. & Belch M.A. (2004). Advertising and Promotion: An Integrated
Marketing Communications Perspective (6th Edition). USA: McGraw-Hill.
Burnett, J.J. (1993). Promotion Management. Boston: Houghton Mifflin
Economic Information & Agency. (1999-2003). Hong Kong economy yearbook
(1999-2003). Economic Information & Agency
Elliott, R. & Percy L. (2005). Strategic Advertising Management (2nd Edition). UK:
Oxford University
Engel, J.F., Kinnear, T.C. & Warshaw, M.R. (1994). Promotional Strategy: Managing
the Marketing Communication Process (8th Edition). Burr Ridge
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Hong Kong Catering Industry Association. (2001). 全面禁煙建議: 香港飲食及酒店
業面對的問題. Hong Kong
Jefkins, F. (1994). Advertising (3rd Edition). Singapore: Pitman
King W.K .& Reid L.N, (2005). Local Advertisers Say Cost Less Important Than
Media Effects. Newspaper Research Journal.thens: Spring 2005
Vol.26, Iss. 2/3; pg. 27
Parente, D. (2004). Advertising Campaign Strategy (3rd edition). USA: South-Western,
Thomson.
Pink, D.H. (1998). Metaohor Marketing. pp214-229
Tulving, E. (1983). Elements of Episodic Memory. UK: Oxford University
Paisley, W. J. (2000). Public Communication Campaigns. In Ronald E. R. & Charles K.
A.(2000), Public Communication Campaigns. Thousand Oaks, Calif.: Sage
Publications
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Appendices
Appendix 1: Online Questionnaire about Pizza Express
A. Eating Habit 1. The eating style of Hong Kong people, especially age of 18- age of 40, is:
l Chinese style l Western style l Diversified style
_____________________________________________________________________ 2. How many time(s) will you spend about or over $80 on eating outside in group?
l 1 time a week l 2 times a week l 3 times a week l More than 3 times a week l Others
_____________________________________________________________________ 3. Normally, which of the following matter(s) will be under your consideration
when you eat outside? l Taste of food l Quantity of food (Make you full?) l Nutrition of the food l Restaurant Decoration l Eating environment (Crowd? Noisy?) l Service quality l Location for gathering l Others
_____________________________________________________________________ 4. When you spend about or over $80 for a meal, which of the following matter(s)
will be under your consideration when you eat outside? l Taste of food l Quantity of food (Make you full?) l Nutrition of the food l Restaurant Decoration l Eating environment (Crowd? Noisy?) l Service quality l Location for gathering l Others
_____________________________________________________________________ 5. Is the Italian food in your menu of eating when you eat outside in group?
l Yes l No
If “No” is chosen, please go to Q9
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_____________________________________________________________________ 6. How many time(s) do you eat Italian food outside?
l 1 time a week l 2 times a week l 3 times a week l More than 3 times a week l Others
_____________________________________________________________________ 7. To continuous, how much, in average, do you spend in each time?
l $0-$50 l $51-$100 l $101-$150 l Over $150
_____________________________________________________________________ 8. To continuous, the reason(s) for resorting (光顧) the Italian Restaurant is/are?
l Taste of food l Quantity of food (Make you full?) l Nutrition of the food l Restaurant Decoration l Eating environment (Crowd? Noisy?) l Service quality l Location for gathering l Others
_____________________________________________________________________ B. About PizzaExpress 9. Which brand(s) do you know?
l Pizza Hut l Spaghetti House l PizzaExpress l Pizza Box l Italian Tomato l California Pizza Kitchen
_____________________________________________________________________ 10. To continuous, any other Italian restaurant you can raise out? If “ PizzaExpress” was not chosen in Q9, please go to Q20 _____________________________________________________________________ 11. The image(s) of PizzaExpress is/are?
l High class, for adult only l Serving “real” Italian food l A location for gathering, having fun l Comfortable environment
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l Others _____________________________________________________________________ 12. Have you ever tried PizzaExpress?
l Yes l No
If No is chosen, please go to Q19 _____________________________________________________________________ 13. The rating on the food of PizzaExpress is? (1=very bad, 5=very good) 1 2 3 4 5 _____________________________________________________________________ 14. The rating on the eating environment of PizzaExpress restaurants is? (1=very bad,
5=very good) 1 2 3 4 5 _____________________________________________________________________ 15. The rating on the quality of service provided at PizzaExpress restaurants is?
(1=very bad, 5=very good) 1 2 3 4 5 _____________________________________________________________________ 16. Any other comment to PizzaEspress?
l Yes l No
_____________________________________________________________________ 17. Do you think PizzaExpress can specify itself from the Italian restaurants in Hong
Kong? l Yes l No
_____________________________________________________________________ 18. To continuous, why? _____________________________________________________________________ 19. How do you know PizzaExpress? By:
l News related l Print Advertising (magazine and newspaper) l Print Advertising (direct post) l Internet advertising l Friends introduced l Others
_____________________________________________________________________ 20. How do you know the Italian restaurants in Hong Kong? By:
l News related
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l TV advertising l Print advertising (magazine and newspaper) l Print advertising (direct post) l Internet advertising l Friends introduced l Others
_____________________________________________________________________ C. Others 21. Are you the member of a gym club?
l Yes l No
_____________________________________________________________________ If No is chosen, please go to Q 23 _____________________________________________________________________ 22. Do you want to join a gym club?
l Yes l No
If No is chosen, please go to Q25 _____________________________________________________________________ 23. The joining fee is the main obstruct of joining a gym club?
l Yes l No
If Yes is chosen, please go to Q25 _____________________________________________________________________ 24. To continuous, why don’t you join a gym club? _____________________________________________________________________ 25. Take away service is important to Italian restaurants?
l Yes l No
_____________________________________________________________________ 26. To continuous, why? _____________________________________________________________________ 27. Take away service with delivery (送遞) is very important to Italian restaurant?
l Yes l No
_____________________________________________________________________ 28. To continuous, why? ____________________________________________________________________
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_ 29. Do you want to try cooking Italian yourself? (All material needed are provided) _____________________________________________________________________ D. Personal Information 29. How old are you?
l Below 18 l 18-25 l 25-32 l Above 32
_____________________________________________________________________ 30. What is your education level?
l Primary l Secondary l Non Degree Tertiary l Degree or above
_____________________________________________________________________ 31. What is your job nature?
l White-collar l Blue-collar l Student with part time job l Student without part time job l Others
_____________________________________________________________________ 32. Where do you work/learn?
l Causeway bay and Wan Chai Area l Central l Taikoo Shing l Tsim Sha Tsui l Others
_____________________________________________________________________ 33. Where do you live?
l Causeway bay and Wan Chai Area l Central l Taikoo Shing l Tsim Sha Tsui l Others
_____________________________________________________________________ 34. How much do you earn per month?
l $0 l $1-$5000 l $5001-$10000 l $10001-$15000 l $15001-$20000
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l Above$20000 _____________________________________________________________________
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Appendix 2: Quantitative Analysis about the online survey
An internet survey was conducted during May 2006 – June 2006. 80 Hong Kong
residents were invited to participant the survey. They are all in the age group of 18 – 40
with steady income $7,000 - $20,000.
In the survey, they are asked to answer all questions of the questionnaire.
Part A: Eating Habit
ü 90 % of respondents thought diversify was their eating style.
ü In average, for average spending more than $80, 60% of the respondents
mentioned that they would eat outside 3 times a week, 10 % of them would eat outside
more than 3 times a week, 20% of them would eat outside 2 times a week, and 10 % of
them would eat outside 1 time or less than 1 time a week.
ü 60% of the respondents mentioned that Italian food is in their food list. Within the
group, 80% of them mentioned they would eat Italian food at least 1 time a week. And
90% of them would spend over $100 eating Italian food each time.
ü In normal case (not consider the spending), the following factors are the main
considerations of the respondents: taste of food (100%), restaurant decoration (100%),
eating environment (81%), service quality (76%), and the location for gathering (55%)
when they spent over $80 eating outside.
ü In the case of spending over $80, the following factors are the main considerations
of the respondents: quantity of food (79%), taste of food (72%), fast serving (64%), and
eating environment (52%) are the main considerations of the consumers. The result is
similar to that of eating in Italian restaurants.
Part B: About PizzaExpress
ü Within the most popular Italian restaurants in Hong Kong, Pizza Hut and
Spaghetti House have the highest recognition brand awareness (100%) within the
target group. Followed are PizzaBox (60%) and Italian Tomato (50%). The lowest are
PizzaExpress (35%) and California Pizza Kitchen (30%).
ü PizzaExpress gave the image of high class, for adult only (80%), confortable
environment (75%) serving “real” Italian pizza (65%), and a location for gathering, and
having fun (50%) within the group which knows the brand and 60% of them mentioned
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that PizzaExpress could specify itself from other Italian restaurants, especially the
dominators, in Hong Kong based on its food taste and the eating environment.
ü The rating on the quality of food, eating environment and the services are 4, 4.2,
and 4 (out of 5) respectively (For the group which had tried PizzaExpress before).
ü Most of the respondents knew PizzaExpress (the brand) by introduction of friends
and walk in experience. Only 10% of them knew the brand by advertising.
ü All respondents knew the other brand (Italian restaurants) by its advertising and
walk in experience.
ü 50% of the respondents mentioned that PizzaExpress would be a better choice if
the price of food is lower.
Part C & Part D: Others Finding
ü 70% of the respondents showed the intention of join fitness club in Hong Kong
ü Within this group, 90% of people thought the monthly fee of the club is expensive
ü 85% of the respondents though the take away services is important for an Italian
restaurant
ü 70% of the respondents thought that take away service with delivery is important
for an Italian restaurant.
ü Only 20% of respondents showed the intention of cooking Italian (all materials
are provided) himself/herself.
ü The relationship between the traveling location of the respondents and the
recognition brand awareness of PizzaExpress analyzed by SPSS.
Chi-Square
Relationship between the travel location of the survey responds and the
recognition brand awareness of PizzaExpress
Research Hypothesis
There is significant dependence between respondents who always travel to commercial
area (with PizzaExpress outlet) with regard to the recognition brand awareness of Pizza
Express.
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Data analyses (by SPSS) Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Location * Choice 80 100.0% 0 .0% 80 100.0%
Location * Choice Crosstabulation
Count
Choice
1.00 2.00 Total
1.00 23 27 50 Location
2.00 5 25 30
Total 28 52 80
Chi-Square Tests
Value df
Asymp. Sig.
(2-sided)
Exact Sig.
(2-sided)
Exact Sig.
(1-sided)
Pearson Chi-Square 7.092(b) 1 .008
Continuity Correction(a) 5.861 1 .015
Likelihood Ratio 7.563 1 .006
Fisher's Exact Test .009 .007
Linear-by-Linear Association 7.003 1 .008
N of Valid Cases 80
a Computed only for a 2x2 table
b 0 cells (.0%) have expected count less than 5. The minimum expected count is 10.50.
Key: Travel Location: 1 = Commercial Area with PizzaExpress outlet, 2: Other Area
Choice: 1 = Know PizzaExpress, 2 = Don’t know PizzaExpress
Result of the Research
The chi-square test detected there is significant dependence between the travel location
of the respondents and the recognition brand awareness of PizzaExpress, x2 (1, N=80)
= 7.092, p<0.05
Implication of the Result
The chi-square test shows the differences between the categories of an independent
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variable with respect to a dependent variable. The greater chi-square value, the smaller
the p value, and in this case, the p value is smaller than 0.05, that means there are 99.2%
probability that the research hypothesis is true.
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Appendix 3: Promotional Mixed of PizzaExpress in the Past 5 years
Campaign
group Thumbnail Publication Date Section
Page
No. Position Size Color Full Rate
PizzaExpress
HK Magazine Apr-18-
2003
Main
Book 11 ROP
1/4
Page
4
Color 5,150
Ad Total HK$: 5,150
Hong Kong
Business
Aug-1-
2003
Main
Book 59 ROP
Full
page
4
Color 29,890
Ad Total HK$: 29,890
Hong Kong
Business
Sep-1-
2003
Main
Book 35 ROP
Full
page
4
Color 29,890
Ad Total HK$: 29,890
Hong Kong
Business
Oct-1-
2003
Main
Book 63 ROP
Full
page
4
Color 29,890
Ad Total HK$: 29,890
HK Magazine Oct-3-
2003
Main
Book 23 ROP
1/4
Page
4
Color 6,700
Oct-3-
2003
Main
Book 23 ROP
1/4
Page
4
Color 6,700
Oct-10-
2003
Main
Book 25 ROP
1/4
Page
4
Color 6,700
Oct-10-
2003
Main
Book 25 ROP
1/4
Page
4
Color 6,700
Ad Total HK$: 26,800
Advertiser Total HK$: 26,800
Campaign Group Total HK$: 121,620
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Appendix 4: Advertisements of the Campaign
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Mini Pizza Buffet 23rd and 24th December, 2006
www.pizzaexpress.com.hk