Suggested market strategy for Nandos restaurant chain

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(NANDOS) 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. Nandos 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 Nandos in here. . FUNCTIONS It is a restaurant dedicated to people with an craving for life, people who love to laugh and exist to eat. At Nandos we believe in our flame-grilled Periphery Chicken, we believe its 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: Nandos 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) Nandos 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 Nandos 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 ps of marketing: 7 Ps of MARKETING: 7 ps 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. . 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. Nandos also serves burgers, pitas, salads, wings and wraps. In some countries, Nandos 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 Nandos. 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 KRAs 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 Im Lovin It campaign does. KFC KFC corporation positions itself as the worlds most popular chicken restaurant chain, specializing in extra crispy fried chicken, Twister and Colonels 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 McDonalds 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 McDonalds still has plans for more international expansion. Threats The companys 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 Donalds 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) Its 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 worlds 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 cant 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 Donalds 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) Its 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 worlds top 30 hottest marketing brands CSF/CA MARKETING Critical Success Factors (CSFs) 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 Nandos in the following areas of their business: SEO and SEM Social Media Marketing QR Codes Email Campaigns Trade Magazine Advertising Mobile Marketing Lets take the example of the famous social networking website and see how it can benefit Nandos 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.