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Suggested market strategy for Nandos restaurant chain

It is an individual report outlining a suggested marketing strategy, focusing in detail on one of the target markets, for the future marketing direction of the chosen organisation(NANDO’S) in dealing with the issues and problems identified. It is based on the swot and twos analysis done on nandos.

According to the earlier research done on nandos the formulation of appropriate aims and objectives and critically discussion of the strategic choices is done. IdentifIcation and discussion of the image and positioning strategy is also done which is described by a tactical marketing plan, discussing in detail any relevant marketing mix activity.

The swot analysis and marketing mix plans of its competitors is described.

The aim is to concentrate on marketing strategies rather than focusing on wider corporate strategic management issues.

The main focus of this assignment is on developing an appropriate tactical marketing mix plan for a recommended strategy and demonstrating evidence of wider research and reading.

Nandos is one of the fastest growing restaurant chain with a portugese/Mozambique theme.

Nandos is known as the home of legendary grilled peri peri chicken.

Nando’s was born in 1987.earlier it was named as chicken land, but was renamed again after its founder Mr. Fernando Duarte.

Started in Southern Johannesburg, South Africa with a Portuguese/Mozambican theme.

It was formed by two friends Fernando Duarte and Robert Broz in africa.

It has specialty of fresh-flamed grill chicken spiced with Periphery sauce, indigenous

Its growth can be seen with the fact that there are around 700 restaurants in 29 countries.

It launched its first restaurant in UK in 1992 and now has more than 200 Nando's in here.

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FUNCTIONS

It is a restaurant dedicated to people with an craving for life, people who love to laugh and exist to eat. At Nando's we believe in our flame-grilled Periphery Chicken, we believe it's the best in the world. Taste the only one of its kind essence and fire of our Periphery chicken which is only one of its type.

Nandos is of the finest restaurant chain in the world as it promises to offer a world class chicken experience at reasonable prices with unfailing quality, value and dedication to its consumers.

Human Resource Team:

Nando's earlier known as chickenland originated from South Africa.It is chain of chicken restaurants, which arrived in the UK in 1992. Nandos has around 137 restaurants with a staff of 2,000 and an HR team of 30. Each restaurant has a team of two 'buddies' who are in charge of HR department . (http://www.nandos.com)

Nando's management focuses on giving friendly and prompt services to customers.It also focuses on placing a strong emphasis on staff motivation, believing that happy employees are the key to provide good customer service. Every restaurant manager is known as a Patraos meaning Portuguese for head of the family. Area managers are known as MDs and each has a fun budget to hold parties and days out for staff.The management is considered to be very important in running the restaurants.

FINANCE

Nando's has been growing as a restaurant at a rapid rate.it has about 700 eateries in about 29 countries with the operating profits of about $140 million. iIt was launched in the UK and Ireland itself in 1992 and now has 217 restaurants here, all directly owned and operated.Whereas in its originating country i.e South Africa,it has about 250 outlets which are franchises. Most of its other markets are populated by franchises. (Business Times Online, UK)

One of the most important marketing tool is 7 p’s of marketing:

7 P’s of MARKETING:

7 p’s of marketing include physical evidence, place, price, product, process, promotion and people.

PHYSICAL EVIDENCE:

Nandos popularity could be easily judged by looking through its ongoing increasing locations around the globe.Its roots can be seen in almost all growing nations.

It is spread in around 31 countries which include:

Australia, Bangladesh, Bahrain, Botswana, Canada, Cyprus, Fiji, India, Ireland, Kuwait, Lebanon, Lesotho, Malawi, Malaysia, Mauritius, Namibia, New Zealand, Nigeria, Oman, Pakistan, Qatar, Singapore, South Africa, Turkey, UAE, UK, USA, Zambia and Zimbabwe.

Nandos is doing extremely good and spreading its spreading very fast around the globe.

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PLACE:

Place is reffered as the locations around the globe.It aims at describing the the total number of outlets.

Nandos is positioned in around 31 countries with more than 700 restaurants and is still growing rapidly.

PRICE

Penetration pricing:

It is based on keeping the offering low priced to grab the maximum market share

Competition pricing:-

In this the focus on price is less as compared to non price competition items such as location and service

Psychological pricing:-

This is market based approach where the customer psyche is intensely affected.

PRODUCT

Nandos Product portfolio primarily comprises of flame grilled Periphery chicken which is the main focus of customers.The chicken is mainly served in quarters,halves and wholes.

Cold drinks, shakes, ice tea , appetizer are also served at a nominal price.

Nando’s also serves burgers, pitas, salads, wings and wraps. In some countries, Nando’s sells chicken livers, Espetada (a large stand with a skewer of chicken breast and grilled peppers) and the Cataplana (a chicken and rice dish served in a traditional Portuguese copper dish). (www.nandos.com)

It also manufactures a range of sauces which include Peri-Peri sauces, marinades, cooking sauces and a Peri-Peri Essence. (www.nandos.com).

PROCESS

Amazing taste with nutrition –The chicken provided is lower in fat with great taste and high on protein.

Freshly prepared – Premium chicken are selected for Nando’s. Then they are trimmed for excess fat and marinated in Peri-Peri sauce for 24 hours for the amazing taste.

Thrilling Grilling – Chicken is properly grilled naked on an open flame resulting in lower cholesterol and fat. And is basted on customer preference like lemon and herb, mild or extra hot Peri-Peri.

Uses 100% natural ingredients and no preservatives, flavors’, colors and no added MSG.

PROMOTION

360° promotional techniques are used.

For winning prizes and discounts scratch cards are given when an order is placed on various combo meal.

Special offers like value meals offer greater value for money for the customer

PEOPLE

Friendly and prompt services to customers.

Appropriate interpersonal skills, aptitude, and service knowledge.

Responsiveness, reliability, assurance, empathy are the KRA’s

Transforming the transaction value to the customer life time value.

OPERATIONS

Nandos is known for its overwhelming staff. They give their best to make it a lifetime experience for the customers. I interviewed some crowd to judge about their experiences in nandos and according to the people it was one of the best restaurants experience for them. Best known for its peri-peri chicken which is really mouth watering. Even if the restaurant is busy the order placed comes to you in less than 10 -15 minutes. Unlike other restaurants the staff cooperates instead of annoying the guests. One of the best part about nandos is that it has options for vegetarian people too.There are some varieties of options to choose from pastries and other desserts priced between £2 to £3.The service is very quick and wonderful. One can choose from different varieties of menu. So nandos could be an lifetime and mouthwatering experience for the people.

COMPETITOR ANALYSIS

POSITIONING OF COMPETITORS:

MC DONALDS

It positions itself as the leader in quick service restaurants.

In order to maintain dominance, they market to a younger set of persons, much in the same way that our “I’m Lovin It” campaign does.

KFC

KFC corporation positions itself as the world’s most popular chicken restaurant chain, specializing in extra crispy fried chicken, Twister and Colonel’s Crispy Strips chicken with home style ideas which are different from others

SWOT MATRIX OF McDonalds

Here are some major strengths,weakness,oppurtunities and threats of mc donalds are described.

Strengths

McDonald’s is considered as a market leader in both the domestic and international markets.

It has an efficient food preparation style that follows the process in a systematic way

The food is cheap and lots of variety is available.

Weaknesses

High renting cost and high fixed cost.

Price competition with the competitors resulting in low revenue.

There is lack of product innovation as the same menu is being used from a long time.

Opportunities

It can adapt to the needs of the societies and undergo an innovative product line

McDonald’s still has plans for more international expansion.

Threats

The company’s aggressive international expansion.

Foreign currency fluctuation as it uses standard pricing for its food items.

SWOT ANALYSIS OF KFC

Strengths

KFC has strong trademark recipes.

Ranks highest among all chicken restaurants for its convenience and menu variety.

Distribution strategy.

Weaknesses

Admitted inability to provide quality service.

Lack of knowledge about their customers.

Conflicts between KFC and PepsiCo cultures.

Opportunities

Overseas expansion with the rapid economic growth.

Updating restaurants.

Threats

Increasing wage rates directly affect menu prices.

Changing customer demands.

BRAND AUDIT

KFC

McDonalds

Brand image

Bucket chicken, wings of chicken, their mascot

Chicken burgers, cone ice cream, Ronald

What is your perception towards the customer

Enjoy Crispy Chicken

Experienced service which is the industry standard.

Roles these brand play in your life

Global Appeal

Global appeal with providing best service in industry

What is the reason for going there

To have chicken served

A multi fast food choice

Level of awareness

High

High

PESTLE

Pestle is an abbreviation for the factors that should be understood by a company as part of its environmental analysis. It is described as:

P – Political

E – Economic

S – Social/Cultural

T – Technological

L – Legal

E – Environmental.

OPPORTUNITIES & THREATS

Opportunities

Threats

People are more open to experiment with food now a day.

Rapid growth in food industry

International expansion

Demographic trends

Rapid economic growth

Strength of competition.

Rising sale of substitute goods. ex- Mc Donald's cheap chicken mayo burger (99p).

Mature/overstored industry.

More health-conscious consumers.

Loyalty enjoyed by the present competitors.

Economic downturn

Internal

Factors

(IFAS Table)

External

Factors

(EFAS Table)TOWS MATRIX

Strengths (S)

Branching (29 countries)

It’s fresh (never frozen) marinated for 24 hours

Grilled to order (healthy)

Customer able to choose level of spice in food.

In the UK itself 214 restaurant

Every restaurant is unique – individually design

2010 - one of the world’s top 30 hottest marketing brands

Weaknesses (W)

Menu updating cycle is too long

Less care for religion and vegetarian costumer

High renting cost , fixed cost

Relatively high food price

Health problem about grilling food

Traditional grill food can't satisfy all the costumers.

Does not provide online ordering

Opportunities (O)

People are more open to experiment with food now a day.

Rapid growth in food industry

International expansion

Demographic trends

Rapid economic growth

S-O Strategies

There are room for more international expansion (S1, O3)

Increase number of outlet in current market (S1, S5, O1, O2)

Increase marketing effort on healthy food (S2, S3, O1)

Adding new menu items (S3, O1)

W-O Strategies

Add more food categories (w1 w2 w6 o1)

Add online service with home delivering (w7 o2)

Decrease the fixed cost of the food (w2 w3 05)

Threats (T)

Strength of competition.

Rising sale of substitute goods. ex- Mc Donald's cheap chicken mayo burger (99p).

Mature/overstored industry.

More health-conscious consumers.

Loyalty enjoyed by the present competitors.

Economic downturn.

S-T Strategies

Open more outlets/Expand internationally (T1, T5, S1, S5)

Cut the product prices (T1, T2, T6, S2, S3, S4)

Start Home-delivery. (T1, S5, S7)

Increase marketing efforts (T1, T3, S1, S5, S7)

Attract more customers. (T3, T5, S1, S2, S3, S4, S5, S6, S7)

Enhance the food making standards. (T1, T4, S2, S3, S4)

W-T Strategies

1. Should come out with some cheap products to compete with others.(w4,t2)

2. Must use more healthy ingredients to attract the health conscious population.(w-5,t-4)

3. Need to focus on strategies to gain more profit in economic downturn position(w3,t6)

4. must come with more vegetarian products to attract the crowd.(t1,w2)

TARGET MARKET PROFILE:

Age: 18 - 30 year old (Generation y)

Gender: Male and Female

Income: Moderate to high

Occupation: Students and Young Independent People

Social class: Middle to Upper Class

Risk perception: Low risk

Needs-motivation: Sports and independent images

Brand loyalty: Strong

STRENGTH

Branching (31 countries)

It’s fresh (never frozen) marinated for 24 hours

Grilled to order (healthy)

Customer able to choose level of spice in food.

In the UK itself 214 restaurant

Every restaurant is unique – individually design

2010 - one of the world’s top 30 hottest marketing brands

CSF/CA MARKETING

Critical Success Factors (CSF’s) are the critical factors or activities required for ensuring the success of the business. The term was initially used in the world of data analysis , and business

Analysis.( http://rapidbi.com/created/criticalsuccessfactors.html)

Critical Success Factor (CSF) Marketing can help Nando’s in the following areas of their business:

SEO and SEM

Social Media Marketing

QR Codes

Email Campaigns

Trade Magazine Advertising

Mobile Marketing

Let’s take the example of the famous social networking website and see how it can benefit Nando’s and how the brand name can be promoted using the World Wide Web:

Social Media Marketing on Facebook, Twitter, LinkedIn, etc is huge right now. Facebook has over 500 million active users and uses a targeting system for delivering ads that works.

More than 500 million active users.

50% of active users log on to Facebook in any given day.

Average user has 130 friends.

People spend over 70

0 billion minutes per month on Facebook.

Average user is connected to 80 community pages, groups and events

Average user creates 90 pieces of content each month

More than 30 billion pieces of content (web links, news stories, blog posts, notes, photo albums, etc.) shared each month.

More than 70 translations available on the site

Using demographics and geographic analysis, ads should be targeted to the right sex, age group, metropolitan or national areas - Facebook really delivers. Setting up smart campaigns for your wall posts and ads is crucial.. Custom pages can also be built listing your services, promotions, and more. Facebook determines the location of a user based on IP (Internet Protocol) addresses, which can help identify the country or city where a user is physically located. If a user has listed a current address on their profile, they may see ads targeted to that location, regardless of where they are currently located. So masses can easily be reached and brand can be promoted easily with the direct technique.


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