Planet Hollywood was a restaurant franchise that expanded rapidly in the 1990s but then declined as many locations closed over the next 20 years. The marketing plan proposes rebranding Planet Hollywood by remodeling locations to feature themes from classic movies, introducing new celebrity-inspired menu items, and launching a loyalty program. The target market is people ages 18-40 who want a unique dining experience. Key aspects of the rebranding include renovating locations, launching advertising campaigns featuring celebrities, and focusing the menu on signature dishes created by celebrity chefs to attract new customers and increase revenues.
1. ALBERLY MARKETING PLAN
Fall 2015 Marketing Interns:
Alison Mittelstaedt & Kimberly Robles
Rebranding
PLANET HOLLYWOOD
Logo created in 1991 Our logo created in 2015
2. Marketing Plan
Fall Internship 2015
“A marketing plan is a comprehensive
blueprint which outlines an
organization's overall marketing
efforts.”
Executive Summary
Launched in 1991, Planet Hollywood was a unique Hollywood-themed restaurant that
quickly expanded to 90 different locations by 1998. At its peak, Planet Hollywood’s sales
revenue was $475.1 million in 1997 but quickly dropping to a net loss of $243.9 million in 1998.
Due to the company’s quick expansion over eight years, Planet Hollywood has closed over 80
locations over the past 20 years. Today only six locations (Orlando, FL; New York, NY; Las
Vegas, NV; Niagara Falls, ON; Disneyland Paris, and London, UK) remain with unsteady
revenues and uncertain futures.
The rebrand of Planet Hollywood will increase the visibility and popularity of the
franchise by recreating the restaurant layout, increasing customer interaction and celebrity
engagement. Alison Mittelstaedt and Kimberly Robles, two College Hill Custom Threads interns
from Washington State University have combined their names and creative minds to become a
marketing team known as Alberly. The Alberly marketing plan will focus on rebranding Planet
Hollywood in which consists of three marketing campaigns that will attract customers to
“Experience Hollywood” in every restaurant location. The Alberly team will increase their
visibility through advertising on social media platforms, television commercials, and celebrity
endorsements. Using digital platforms as well as television broadcasters will reach our target
market at a national level, and an international level in the future. We asked our surveyors in
which ranged from women and men ages 18-45 all over Washington what they envisioned when
they thought of Planet Hollywood and majority of our surveyees knew it was a restaurant.
3. Target Customers
As stated from the National Restaurant Association, “The U.S. restaurant business is
expanding rapidly. Now, U.S. citizens spend more than $700 billion on food each year, and
about 45 percent of that is spent on eating out. Since the 1970s, dual-income families have been
the norm, generating more disposable income for eating out while they tend to have less time for
cooking at home. The demographic shift, combined with the restaurant industry’s ability to
deliver a consistent product at a reasonable price, has resulted in a generation of U.S. consumers
who eat out.”
The Alberly plan has chosen Planet Hollywood’s target market due to the data we have
found through our surveys. Our target market for Planet Hollywood are men and women ages
18-40 and families who are interested in a unique dining experience that will not get anywhere
else. We say ages 18-40 because we believe that families with disposable income are eating out
more than cooking at home and want a unique dining experience. We are kid friendly and want
to give the best experience to anyone who walks in our front door. Our target consumers are
interested in great food, Hollywood movies, a fun atmosphere, and are always looking for new
and different experiences while avoiding the $200 dinner fees. Our customers will be able to
experience this this through our new layout because they will be able to get that different movie
themed experience every time. Our lowered prices will match the disposable incomes of our
target market, which will drive in more customers who feel they agree with our prices. Lastly,
our loyalty program will show that we want to create relationships with our customers in which
Planet Hollywood has never done before.
For all of our graphs we show, we received data by surveying men and women ages 18-
45 in the Pullman and greater Seattle area because we felt we would get a broad range of
4. opinions and data by surveying a large age range in different parts of Washington through online
surveys. We started interviewing people in person around Pullman but then found that it was
much more beneficial for the Alberly team to do online surveys to would pull more surveyors
rather than in person.
Unique Selling Proposition (USP)
The unique selling proposition of a company is of critical importance as it distinguishes
your company from competitors. In the restaurant industry it is very important to not only have
great food and service, but to provide your customers with an experience that will make
customers want to return and allow their friends and family to share the experience as well.
“Experience Hollywood” will resonate strongly with our customers who desire a unique
dining experience through Planet Hollywood’s floor plan inspired by Hollywood’s biggest
movies. The “Hollywood” theme continues to be carried out through our celebrity menus and
5. loyalty program that will make our customers feel like they are in truly experiencing Hollywood,
no matter their location. Compared to our competitors, Hard Rock Cafe and Rainforest Cafe,
Planet Hollywood will give customers a unique experience every time their dine at our
restaurant, with the opportunity to experience three different themes in each location. Hard Rock
Cafe sells a full rock and roll experience through their live music, old American feel, and great
food and drinks. Rainforest Cafe is known for their unique jungle dining experience through
mechanically operated tree and animals, live aquariums, and jungle sounds in the background.
Whether it is once a month or once a year, Planet Hollywood will be a memorable experience
that will leave our customers with a satisfied appetite and a unique Hollywood experience that is
not available anywhere else. When asking our surveyees whom they decided our biggest
competitors were, they agreed it was the Hard Rock Cafe and the Rainforest Cafe.
Pricing & Positioning Strategy
Planet Hollywood started with high pricing strategies and low quality food. Planet
Hollywood wants to be seen as a fun and unique dining experience for everyone, and not limited
to a specific customer based on price.
As huge changes are happening, Planet Hollywood is transitioning to lower prices with
much higher quality food. We are able to do this by lowering our inventory so that we can spend
less money on food inventory and lowering our menu prices for our consumers. Before, a dinner
for two would average of total of $60+, with our new menu items a dinner for two will average
to a total of $40. We are condensing our menu down from a 30-page booklet, to a simple one-
page menu. Customers don’t want to flip page after page. We want to create a smaller menu with
6. amazing signature dishes rather than putting all our kitchen’s effort into making too many dishes
with way too many ingredients. We want the freshest ingredients in each of our dishes.
Distribution Plan
Our customers will purchase from Planet Hollywood at our restaurant locations.
Customers are allowed to make reservations and pay with their loyalty cards on our Planet
Hollywood app.
Your Offers
Our loyalty program will give customers the opportunity to collect points based off
restaurant purchases, social media interactions, and experiencing each theme in our restaurants.
These points can used towards restaurant discounts, exclusive movie screenings, celebrity
appearances, award show ticket giveaways, and other special deals only offered to members of
our loyalty program.
Marketing Materials
Planet Hollywood has been outdated for the past decade, with that being said we are
completely updating the bar and restaurant with new technology, media, and signage.
Logo/Website: This includes the recreation of our website with our new logo in which is
a new modern look in black and gold, with a Hollywood spotlight look in gold, representing the
Hollywood/Oscars award gold color. We wanted to keep the circular look in our logo to
represent the “Planet” aspect for Planet Hollywood. We wanted a simple representation of Planet
Hollywood with a sheik “today” look.
App: We have created an application that is compatible with Apple and Android. We
have each of our campaigns incorporated into our application as well as our loyalty program. Our
loyalty program is a HUGE aspect to our app because not everyone remembers their tangible
loyalty card wherever they go, but you do carry your phone around wherever you go! Your card
is synced in your app so that you can show your app to your server to get your points, as well as
keep track of your points and rewards at any point in time. Our updated new menu is always
available at the tap of a finger as well. The Alberly marketing team
7. YouTube Channel: Our YouTube channel is for our Celebrity Campaign, where today’s
celebrity cook their favorite dishes in our kitchen to be added to our menu monthly. The videos
of celebrities cooking with our chefs will be regularly updated onto our YouTube channel to
keep our consumers updated with the new menu items created by their favorite celebrities.
Promotions Strategy
Planet Hollywood will reach their target customers through television ads promoting the
themes in the new layout. There will be a general ad for nationwide broadcasters that will focus
on the revival of Planet Hollywood through our campaigns. Different television ads will be
developed based off the location of each restaurant and its themes. Online advertisements will
promote the restaurant itself through various social media platforms (Facebook ads, Twitter ads,
Instagram ads, and YouTube ads). We will also have celebrity endorsements from the celebrities
who are featured on our menu each month. Celebrities will promote his or her dish on their social
media platforms. Lastly, we will send out an a newsletter to our loyalty members including lead
nurturing where right after they sign up for our program, we send them an email thanking them
for signing up. We want to create relationships with our customers.
Online Marketing Strategy
Keyword Strategy: While searching on Google, Bing, Yahoo, etc. Our keyword searches are
“Planet Hollywood”, “Restaurant”, “Bar”, “Themed Restaurant/Bar”, “Memorabilia”,
“Hollywood”, “Celebrities”, “Food”, “Cocktails”, “loyalty program”.
Search Engine Optimization Strategy: Constantly updating our menu monthly with new
celebrity menu items, keeping our social media streaming on our web page, and keeping our
campaigns constantly updated.
Paid Online Advertising Strategy: YouTube video advertisements, Facebook advertisements, and
Instagram advertisements.
8. Social media Strategy: Using our special Celebrities to post their Planet Hollywood cooking
experience to Facebook and Instagram, using short clips of them cooking at Planet Hollywood.
Using YouTube videos to put our advertisements on them during and at the end of the video.
Conversion Strategy
Planet Hollywood plans on turning prospective customers into paying customers by using
our new campaigns to drive customers into our restaurants. The new floor plan, new menu, and
loyalty program are only available at the restaurant so Planet Hollywood will market all three
campaigns as part of our dine in experience.
Joint Ventures & Partnerships
Planet Hollywood was founded thanks to the investments from Hollywood movie stars,
such as Demi Moore, Arnold Schwarzenegger, and Sylvester Stallone. Today, PH will partners
with two new celebrities every month as a part of our new menu. Celebrities will work with our
chefs to create a custom dish that will be available at all Planet Hollywood locations. Celebrities
will be also promoting their dishes and Planet Hollywood on their personal platform.
9. Referral Strategy
Planet Hollywood’s new loyalty program was created to give our customers the best dine
in experience possible. Customers can collect points for every dollar spent at Planet Hollywood,
double points for ordering a celebrity special, dining in all three movies themes, and by referring
friends to our loyalty program. Customers can refer a friend by providing their contact
information, inviting them to join through our app, or by signing up at any location.
Strategy for Increasing Transaction Prices
Planet Hollywood plans on increasing transaction prices by decreasing menu items prices
from an average of $18-$35 per entree to $15-$30. By decreasing the amount of items on our
menu, we are decreasing the amount of money spend on keeping inventory for menu items that
are not popular amongst our customers. The decrease in money spend on inventory will give
Planet Hollywood the ability to allocate fund to advertisements and company growth. We also
are including an iPad at every single table to enhance the customer's visual image of each menu
item, as well as YouTube videos of dishes being made. Each server will have an iPad to plug in
orders to maintain efficiency as well as a way to collect organized data on the daily. This way we
can tell which are the most popular menu items at which times of the day are being ordered and
on which days.
Retention Strategy
We are lowering our menu prices, which will make our customers feel they can purchases
more and more frequently. We have added a loyalty program with points and rewards to increase
10. our revenues and profits by bringing our customers in purchase from us more frequently. Also,
with one of our campaigns we are changing up the themes in the restaurant to draw customers to
want to try out every theme, which it lasts so they can receive more rewards points. Customers
will also be able to track their progress, points, and rewards on the new Application we have
made for iPhone and Android users.
Financial Projections
As part of Planet Hollywood’s rebranding, each restaurant location will be completely
remodeled. Each location will have a new floor plan that will incorporate three Hollywood
classic movies that are on a yearly plan. A majority of our expenses will go towards our remodel,
which will be our biggest return on investment. The new floor plan will give Planet Hollywood
an edge compared to other restaurants by providing a unique dining experience that is not
available anywhere else. Celebrity endorsements and online advertisements will be our biggest
financial investment, advertisement wise. Our revenue will come from restaurant transactions,
hosting events (such as movie screening and celebrity sightings), and our VIP celebrity cooking
events.
11. Appendix
I. Graphs
All of our graphs in our marketing plan were surveyed by a target market age range between the
ages of 18-45, males and females. The Alberly marketing team had 40 surveyors that were all
located in the Washington area.
II. Researched Data
Quote in the Target Market section is from the National Restaurant Location highlighted in a PH
Case Study. (http://www.wiley.com/college/mar/kotabe372897/pdf/case15.pdf)