Marketing decision-making

Marketing decision-making is a collaborative process in Famoso Inc., comprising the marketing
department and Famoso partners Jason Allard, COO; Justin Lussier, CEO; and Christian
Bullock, Chief Business Development Officer. The commercial name of Famoso Inc. is Famoso
Neapolitan Pizzeria or simply Famoso Pizzeria or Famoso. The headquarters of the company
used to be located in Edmonton, Alberta but is now located in Richmond, British Columbia. The
company currently has several plans and challenges. It plans to continue to expand in Canada,
particularly in Ontario and British Columbia. Management is also currently investigating the
market potential for Famoso in the United States and management plans to start considering
which other countries could provide opportunities for the Famoso business model. One of the
company’s current challenges is the increase in year-over-year labor costs. From a marketing
perspective, how can Famoso and its leadership seize those opportunities and minimize those
challenges?
Figure 1: http://www.famoso.ca/
1 Dr. Fernando Angulo-Ruiz (..L@macewan.ca), assistant professor at MacEwan University, wrote this
case solely to provide material for class discussion. The author does not intend to illustrate either effective or
ineffective handling of a managerial situation. The author may have disguised certain names and other identifying
information to protect confidentiality. The author thanks Jason Allard, COO of Famoso Inc., for providing critical
information to develop the case, as well as Ray Ho, Marketing & Communications Manager of Famoso Inc. for
providing very insightful comments and additional information to enrich the content of this case.Chapter 1: How Marketing Discovers and Satisfies Needs
Company Background2
In the summer of 2005 Famoso Inc.’s co-owner, Justin Lussier traveled throughout Italy and
Naples and fell in love with the mouth-watering fire-roasted pizzas. Naples is the birthplace of
pizza, where eating a Margherita pizza is a daily ritual and where culinary traditions in pizza
making have gone unchanged for 200 years. After eating at Pizzeria Sorbillo in Naples, Lussier
looked for a payphone and called his friends and future partners, Jason Allard and Christian
Bullock. He convinced them that they needed to bring authentic Neapolitan pizza to Canada.
Training with the Association Verace Pizza Napoletana, an organization preserving the standards
of authentic Neapolitan pizza,3 Famoso’s owners learned about the unique ingredients and
the cooking process required.
Whether you eat it on the streets of Naples, or inside Famoso Neapolitan Pizzeria, experiencing
authentic Neapolitan pizza is an unforgettable experience. The business concept was originally a
franchised fast-casual pizzeria that offers authentic Neapolitan pizzas, fresh salads, espresso, and
gelato/desserts in a counter-ordering format with added service. The company transitioned to a
full-service model in 2015 and now falls into the casual dining or premium casual segment.4 The
stores provide atmosphere and style allowing for a comfortable meal whether it’s a quick lunch
or a wine-filled evening.5
The Famoso pizza is made of “00” Caputo flour, Campania tomatoes imported from Italy, and
other fresh ingredients. These ingredients help form a beautiful pizza that is cooked in authentic
bell ovens. This is the same way that Italians have been doing it for centuries.6 The “00” in the
flour refers to highly refined, low-gluten flour that produces both a soft and a crispy crust, and
because of the low levels of high-quality gluten, it allows the consumer to easily digest the pizza
and feel great. Famoso pizzaiolos stretch each pizza dough by hand; no rolling pins or machines
are allowed because an authentic Neapolitan pizza is about not only the ingredients but also the
methods used. Tomatoes from the Campania region of Southern Italy contain lower acidity and a
natural sweetness that helps them caramelize in the intense heat of the fire oven. Famoso uses
Fior di latte (fresh, whole milk mozzarella), the larger version of bocconcini on all its pizzas. This
cheese was invented in Naples and has a rich creamy texture. Famoso also uses fresh basil
leaves. Famoso imports bell-shaped fire ovens from Italy that cook the pizza at 900º F in 90
seconds.7
Questions
1. What are the needs and wants of Famoso’s consumers?
2. Marketing helps create value: How does Famoso provide value for consumers?
3. What orientation of marketing does Famoso potentially follow? What are the company’s
challenges in following that orientation?
2 Excerpts from Famoso.ca (2014). Inspiration, May 28, 2014: http://www.famoso.ca/inspiration.php 3 For a history of Neapolitan Pizza and Pizza in Naples, see http://www.famoso.ca/history.php 4 Based on the comment from Jason Allard, Famoso’s COO, April 20165 Excerpts from Famoso.ca (2014). Authenticity, May 28, 2014: http://www.famoso.ca/authenticity.php 6 For a history of Neapolitan Pizza and Pizza in Naples, see http://www.famoso.ca/history.php 7 Excerpts from Famoso.ca (2014). Authenticity, May 28, 2014: http://www.famoso.ca/authenticity.phpChapter 2: Famoso’s Marketing Strategy
Famoso Neapolitan Pizzeria was founded on the passion for authentic, fire-roasted pizzas from
Naples, Italy. Whether you eat it on the streets of Naples, or inside Famoso Neapolitan Pizzeria,
experiencing authentic Neapolitan pizza is an unforgettable experience. The business concept
was originally a franchised fast-casual pizzeria that offers authentic Neapolitan pizzas, fresh
salads, espresso, and gelato/desserts in a counter-ordering format with added service. The
company transitioned to a full-service model in 2015 and now falls into the casual dining or
premium casual segment.8 The stores provide atmosphere and style, allowing for a comfortable
meal whether it’s a quick lunch or a wine-filled evening.9
The competitive advantage of Famoso is the following: its pizza-making process adheres,
passionately, to the strict standards of the Associazione Verace Pizza Napoletana. Famoso
imports flour and tomatoes directly from Naples, and every pizza is topped with Fior di latte
(fresh whole milk mozzarella). Famoso imports bell-shaped fire ovens from Italy that cook the
pizza at 900ºF in 90 seconds. After being cooked in the fire oven for 90 seconds, the final thin-
crust pizza cannot be compared to any pizza available on the market today. The pizza is light,
both soft and crispy, and because of the low levels of gluten in the flour, allows consumers to
easily digest the meal and feel great.10
Famoso’s marketing strategy focuses on guest experience in the restaurant, or what the company
calls “four-walls marketing.” It emphasizes marketing inside the restaurant, as the hour-and-a-
half to two-hour consumer experience in the restaurant is critical to the success of Famoso. It is a
company priority to provide an excellent guest experience when it comes to food quality,
excellent service, and a memorable atmosphere. The ultimate goal is that the guest leaves happy,
something that seems easier said than done. Some of the key marketing metrics Famoso uses to
measure effectiveness are word-of-mouth, willingness to recommend and return on investment
(ROI).
To date, Famoso Neapolitan Pizzeria has been ranked as one of Canada’s fastest-growing
companies, by the PROFIT 500 guide.11 Famoso’s revenue growth in 2014, compared to 2007,
was1250 percent, with approximate 2014 revenue of $2 to $4.9 million. Famoso’s owners have
taken the Famoso franchise across Canada; there are currently over 25 franchises, in Alberta,
British Columbia, Saskatchewan, and Ontario. Famoso also has plans to open restaurants in the
The United States. Because of its results, Famoso received media attention from the Canadian
Broadcasting Corporation (CBC). Also, Famoso’s pizzas have been ranked the best pizza in
Edmonton by Avenue magazine12; one of the most popular new restaurants in Toronto,
Vancouver, and Edmonton by Urbanspoon 2012; and one of the five best gourmet pizzerias in
Calgary by Where Alberta 2013.
Questions
8 Based on the comment from Jason Allard, Famoso’s COO, April 20169 Excerpts Famoso.ca (2014). Authenticity, May 28, 2014: http://www.famoso.ca/authenticity.php 10 Excerpts from Famoso.ca (2014). Atmosphere, May 28, 2014: http://www.famoso.ca/atmosphere.php 11 For more information, see http://www.profitguide.com/microsite/profit500/2015/ 12 See note at Avenue Edmonton http://www.avenueedmonton.com/articles/best-restaurants-best-pizza1. What are Famoso’s goals or objectives?
2. Conduct a situation analysis for Famoso.
3. What skills, technologies, and/or resources distinguish Famoso Neapolitan Pizzeria from
competitors?
4. Which metrics does Famoso use to assess the success or failure of its marketing programs