Page 484 - Foundations of Marketing

Integrated Marketing Communications | Chapter 15 451

Frank Pepe’s Pizzeria Napoletana Uses Positive Word

of Mouth to Become a Premiere Pizzeria

Frank Pepe’s Pizzeria Napoletana has opened one of the most virtually unchanged to the layout and colors of the stores
recognizable pizzerias in the United States using word-of- needed to be congruent to ensure success. He describes
mouth marketing. After returning from World War I, Frank Pepe’s as an experience that allows customers to step back in
Pepe initially began with making bread during the week and time with a handcrafted product.
pizzas on the weekend. After seeing a demand for his prod- Another aspect of developing demand for the company in
uct, he used his entrepreneurial spirit and focused solely on new locations was the advertising tactics used. At times the
pizza. Frank Pepe founded Pepe’s Pizzeria in 1925, with a company uses direct mail, which can be an effective form of
heavy influence from his Italian culture, in New Haven, advertising, and tries to engage with consumers on Twitter
Connecticut. and Facebook to remain connected. As Pepe’s has always
Frank Pepe developed the New Haven-style thin crust done, it relies upon word of mouth to retain and gain new cus-
pizza that earned him a reputation as being one of the coun- tomers. It places emphasis upon the experience and listens to
try’s premiere pizzerias. Many people began referring to customer feedback on whether it is delivering a quality prod-
Frank Pepe as “Old Reliable,” which continued to generate uct. A major form of promotion comes in the form of free
positive feedback throughout different communities. Pepe’s pizza, which is sales promotion. Generally, the week before
signature pizza, the White Clam Pizza, is one of its most a grand opening, Pepe’s will offer free pizza for a week at
notable recipes. that location to allow new ovens to be broken in, workers to
Since the beginning, Pepe’s has been a family-run busi- understand Pepe’s culture, and to showcase the confidence
ness. Frank’s wife and children all worked in the original that Pepe’s has in its product to the local community.
store and, after retiring, they passed the business to their chil- For the public relations side of the company, Pepe’s has
dren, who still have a stake in the business today. Through a donation request option on its website, where customers
the transition between generations, Pepe’s has always aimed are welcome to fill out an application to receive primarily
to deliver a premium product that is consistent and meets gift cards from the company. Pepe’s also holds a good neigh-
customer standards. As people come into the store, Pepe’s bor night, which allows an organization to hold a fundraiser
employees engage in personal selling by communicating at any of its location. Fifteen percent of proceeds made that
various menu items. night are given to the organization. While Pepe’s loses out
Current CEO Ken Berry places a high emphasis upon on some proceeds, these events create quality relationships
delivering the promise and guarantee of quality within their in the community, as well as generate a potentially new cus-
product every day. As chief executive officer, he sees the tomer base. Pepe’s also donates gift cards to nonprofit orga-
challenge of delivering this promise as a duty that helps pro- nizations for fundraising purposes.
tect and build the brand, which the Pepe family initially built. Throughout the years Pepe’s has strived to deliver a prom-
He strives to retain brand equity and rely upon feedback from ise to customers by staying true to the original product. It
loyal customers as the company continues to grow. has maintained brand equity through its dedication and stan-
Including the first and flagship store, there are currently dards set by customers, family members, and all stakeholders
seven pizzerias within Connecticut and New York. With each associated with the product. For this company, it is clear that
new store came the difficult task of maintaining the original through positive word of mouth, integrated marketing does
experience for new, prospective, and loyal customers. When not always need to be a costly expense.
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Pepe’s began to consistently pursue expansion tactics, some
customers appeared dismayed. There were protests and boy- Questions for Discussion
cotts occurring on opening days, as other happy customers 1. What are the various promotion elements that Pepe’s
waited in long lines to test the reputation of the premiere uses to communicate with customers?
pizza. 2. What role does word of mouth play in Pepe’s integrated
To ensure customer satisfaction at the new locations, marketing communications?
Ken Berry discussed the critical nature of replicating every 3. Evaluate free pizza as a form of sales promotion in
aspect of the original idea. Everything from the recipes being Pepe’s success.

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