Page 23 - index
P. 23

ON A TUESDAY IN JUNE, FIVE               campaigns had been launched, and            television ads, to bucking the trend by
            days before Father’s Day,    a two-for-the-price-of-one special was      promoting its ‘call and collect while
            John Nicolakakis and Bonnie  good to go.                                 it’s hot’ tagline, Romans Pizza has
Cooper were on a road trip from Cape                                                 significantly increased the turnover
Town to the Northern Cape centre of        On the day in question, sales were up     and profitability of their franchisees,”
Kuruman, checking in with Roman’s        by 75%. It’s that kind of agility that has  said FASA.
Pizza franchisees along the way.         perhaps played a role in Roman’s Pizza
The CEO of the franchise turned to       winning the Franchise Association of        VALUE FOR MONEY
Cooper, the brand’s Chief Marketing      South Africa (FASA) 2016 Brand Builder      The brand was founded by Nicolakakis’s
Officer, and asked what it would take    of the Year award, an annual accolade       father, Arthur, in 1993 when he bought
to run a promotion for dads on the       which recognises the company that best      a struggling pizza restaurant with the
coming Sunday.                           manages to elevate and grow its brand       intention of turning it around. He soon
                                         through the successful implementation       concluded that the product was too
  By 11am the next day, more than        of a sound marketing strategy.              expensive. But instead of reducing the
130 franchisees had been advised, all                                                price he decided to sell two for the price
in-store promotional material had been     Agility and instant decision-making       of one, turning the business into a price
ordered, ads had been booked on five     are among the positives of running a        leader in the fast-food sector.
radio stations, Facebook and Twitter     family-owned business, according to
                                         Nicolakakis, who says he is planning to       “We provide the best quality meals
                                         double the brand’s footprint in the next    at the best value for money,” claims
                                         two years. He’s frank about consulting      Cooper. “Roman’s Pizza is the founder
                                         with the Roman’s franchisees, while         of the two-for-one discount on any
                                         also having to take risks. “I call it an    pizza of the customer’s choice, and we
                                         autocratic democracy,” he tells the         have set an industry benchmark on
                                                                                     value for money. We are seen as being
                                         ?                                           ‘cheap’ by some, but we only use Greek
                                         He is planning to                           olives, Italian anchovies, whole milk
                                         double the chain’s                          mozzarella and fresh, unfrozen dough.
                                         brand footprint                             Two large pizzas for R99 can feed a
                                                                                     family of four, which is a compelling
                                         IMM Journal of Strategic Marketing.         proposition in tough times.”
                                         “We have a committee that represents
                                         store owners, but I do not believe that     COST CONTAINMENT
                                         the safe decision is always the right       In a highly competitive market,
                                         decision. There was some resistance         however, elements other than pricing
                                         to the Father’s Day promotion, but          and turnover come into play. The first
                                         capitalising on the opportunity, even       is an efficient supply chain. Roman’s
                                         with the time constraints, was a risk       has three depots in the country, which
                                         that paid off substantially.”               management says makes the transport
                                                                                     and supply of goods to stores efficient
                                           The FASA award, which focuses on          and cost-effective – critical in a sector
                                         innovation and effective execution of       where competitors will readily cut prices
                                         marketing strategies rather than the        to woo customers. A ‘no deliveries’
                                         size of the brand’s marketing budget,       policy, which is unusual in the South
                                         recognised that Roman’s Pizza has           African pizza franchise environment,
                                         found its own unique niche in the           also helps to contain transport costs.
                                         competitive pizza market. “From using
                                         well-known comedian Barry Hilton and          “With the influx of international brands
                                         the company’s CEO in its memorable          and the downturn in the economy, we
                                                                                     have had to turn our focus inwards,”
                                                                                     Nicolakakis explains. “It’s critical to >>

                                         August–September 2016 strategicmarketing 21
   18   19   20   21   22   23   24   25   26   27   28