Frank Pepes Pizzeria Napoletana has opened one of the most recognizable pizzerias in the United States using word of mouth (WOM). After returning from World War I, Frank Pepe initially began with making bread during the week and pizzas on the weekend. After seeing a demand for his product, he utilized his entrepreneurial spirit and focused solely on pizza, Frank Pepe founded Pepes Pizzeria in 1925, with a heavy influence from his Italian culture, in New Haven, CT.

Frank Pepe developed the New Haven-style thin crust pizza that earned him a reputation as being one of the countrys premiere pizzerias. Many people began referring to Frank Pepe as Old Reliable, which continued to generate positive feedback throughout different communities. Pepes signature pizza, the White Clam Pizza, was the most notable recipe since the development in the mid-1960s.

Since the beginning, Pepes has been a family-run business. Franks wife and children all worked in the original store and after retiring, they passed the business to their children, who still have a stake in the business today. Through the transition between generations. Pepes has always aimed to deliver a premium product that is consistent and meets customer standards. As people come into the store Pepes employees engage in personal selling by communicating various menu items.

Current CEO Ken Berry places a high emphasis upon delivering the promise and guarantee of quality within their product every day. As chief executive operator, he sees the challenge of delivering this promise as a duty that helps protect and build the brand, which the Pepe family initially built. He strives to retain brand equity and rely upon feedback form loyal customers as the company continues to grow.

Including the first and flagship store, there are currently nine pizzerias within Connecticut and New York, with additional plans to expand into Boston. With each new store came the difficult task of maintaining the original experience for new, prospective, and loyal customers. When Pepes began to consistently pursue expansion tactics, some customers appeared dismayed. There were protests and boycotts occurring on opening days, as other happy customers wailed in long lines to test the reputation of the premiere pizza.

To ensure customer satisfaction at the new locations, Ken Berry discussed the critical nature of replicating every aspect of the original idea. Everything from the recipes being virtually unchanged to the layout and colors of the stores needed to be congruent to ensure success. He describes Pepes as an experience that allows customers to step back in time with a handcrafted product.

Another aspect of developing demand tor the company in new locations was the advertising tactics used. As Popes has always dune, it relied upon word of mouth to retain and gain new customers. It places emphasis upon the experience and listens to customer feedback on whether it is delivering a quality product. At times it uses direct mail, which can be an effective form of advertising, and tries to engage with consumers on Twitter and Facebook to remain connected with them. This is sometimes called electronic word of mouth. A major form of promotion comes in the form of free pizza, which is sales promotion. Generally, the week before a grand opening Pepes will offer free pizza for a week at that location to allow new ovens to be broken in, workers to understand Pepes culture, and to showcase the confidence that Pepes has in its product to the local community.

For the public relations side of the company, Pepes has a donation request option on its website, where customers are welcome to fill out an application to receive primarily gift cards from the company. It also holds a good neighbor night, which allows an organization to hold a fundraiser at any location.

Fifteen percent or proceeds made that night is given to the organization, While Pepes loses out on some proceeds, these events create quality relationships in the community as well as generating a potentially new customer base. It also donates gift cards to nonprofit organizations for fundraising purposes.

Throughout the years Pepes has strived to deliver a promise to customers by staying true to the original product. It has maintained its brand equity through its dedication and standards set by customers, family members, and all stakeholders associated with the product. For Pepes, it is clear that through positive word of mouth, advertising does not always need to be a costly expense.

Frank Pepes Pizzeria, Case 16.1, Chapter 16

Case Summary	In a narrative format, discuss the key facts and critical issues presented in the case focusing on marketing and strategic planning. Conduct a comprehensive SWOT and update the case to the current time.
Case Analysis	What are the various promotion elements that Pepes uses to communicate with customers? What role does word of mouth play in Pepes integrated marketing communications?
Executive Decisions	Evaluate free pizza as a form of sales promotion in Pepes success as well as the effectiveness as a marketing strategy in general.

IMPORTANT - Weekly Assignments (due day 7) - MUST be submitted using Microsoft Word (600-word minimum).