Executive Summary
Nando’s, known for its Portuguese flame-grilled Peri Peri chicken entered Indian market in 2010 with branches in Bangalore, Chandigarh, and Ludhiana. With the tremendous demand and response its first restaurant in Chandigarh, Nando’s Restaurant plans to open new branches in Chennai and Delhi in the current financial year. Nando’s features a fascinating blend of casual dining restaurant and quick service restaurant that is famous for healthy and quality food. The company’s core offering is the flame-grilled Peri Peri chicken, besides a selection of appetizers, salads, wraps, burgers, with equally rich options for vegetarians.
Nando’s plans to reinvent restaurant for individuals, families, and take out customers with discretionary income by selling at a reasonable prices, convenient locations, designing tastefully, and proving industry-benchmark customer service. Nando’s will use advertising, public relations, events, and customer relationship management as marketing strategies. The target market for the company will include individuals, families, and take out customers. Nando’s has the potential to expand into Indian market because the Indian market is open to try new foods. The changing lifestyles also require the chain to consider introducing grilled chicken, rather than deep-fried chicken due increasing health awareness among patrons.
Introduction
Two Portuguese friends, Fernando Duarte and Robert Brozin, established Nando’s Restaurant in 1987 in South Africa. The chain specializes in fresh-flamed grill chicken spiced with Peri Peri. The company currently has 700 restaurants in 35 countries.
Nando’s Restaurant has been operating in China for four years now. The restaurant has made a grand entry into Indian market, and marketing is now critical to the company’s continued success (Luther 37). The store satisfies India’s love for spices, which is why Nando’s has become Preri Peri famous ever since it arrived in India. The basic market need is to offer families, individuals, and take-away customer fresh, creative, attractive spice chicken, salads, and deserts. Nando’s product portfolio primarily comprises of vegetarian and non-vegetarian food like full chicken, burger chicken, vegetable burger, pizza, and wrap. Shakes, cold drinks, ice tea, and appetizer would be served to cater for the need of an Indian consumer along with coffee, tea, cake, and desert.
Market summary
Nando’s has good information about the market and knowledgeable about the common attributes of their most loyal and priced customers. The store will leverage this information to understand the specific needs of their customers, and develop a better communicate with them.
Market demographics
The profile for Nandos Restaurant’s customers consists of the following geographic, demographic, and behavioral factors:
Geographic
Nando’s immediate geographic target includes Bangalore, Chandigarh, and Ludhiana. The store plans to open new branches in Chennai and Delhi. The total target population has approximately at 76,000 (Enz 76).
Demographics
The store targets both males and females with age limits of 17 to 45.
Young professionals who work close to the locations
Young people in colleges and university visit with their friends
People come with their families and friends
An income of more than $40,000
Eat out several times a week
Tendency to visit high quality restaurants
Are health conscious
Behavior factors
There is value attributed to presentation or appearance of food.
Enjoy high quality food without the need to make it themselves.
Take into account health concerns when ordering meals.
Market needs
Nando’s provides its customers with a wide selection of vegetarian and non-vegetarian food like full chicken, burger chicken, vegetable burger, pizza, and wrap. Nando’s offers a wide selection of health conscious choices with high protein content (Nando’s Restaurant 2012). Nando’s seeks to deliver the following benefits that customers consider important:
Patrons can access Nando’s restaurants in several locations with minimal waits and can choose the option of take out or dine.
They offer a variety of exclusive services in different period to increase the overall service value.
Keeping prices low to grab maximum market share.
Market trends
The market trend for the restaurant industry is shifting towards customers that are more sophisticated. People visiting restaurants today are more sophisticated in a number of ways. There is increasing preference for high quality ingredients as patrons increasingly learn to appreciate the qualitative differences (Walker 43). Customers are also learning to appreciate presentation and appearance of the culinary experience. People are increasing more concerned about their health, as evidenced by increase in number of joining health clubs (Sachitanand 121). Customers are demanding for more healthy alternatives when eating out. In addition, patrons are demanding wide selection of foods, they no longer accept limited menu.
Competitors
McDonald’s
McDonald’s is the market leader in both domestic and international markets. The chain is trying to boost its sales by appealing to local tastes. The chain offers vegetarian meals that include items such as burger, sandwich with a mashed-potato patty, cheese, and vegetable. They also offer chicken burgers and cone ice cream.
Yo! China
Yo! China is the largest and first Chinese fast food restaurant to pitch tent in India. This is an upscale Chinese restaurant with spicy Chinese food including fried rice Manchurian, chilly potatoes, and chilly chicken. Yo! China offers a unique experience for patrons seeking casual or fine dining options.
KFC
KFC is a fried chicken chain, which plans to expand its liquid refreshment and vegetarian offerings to attract the Indian youth, who currently drives the consumer market. The chain has also shifted towards healthier meals and snacks by serving grilled chicken rather than deep fried chicken option.
Strengths
Successful items
Consistency of food
Flamed Peri Peri chicken
Food high on protein content
Spicy-so will auger well with the Indian taste buds
Spicy but free from fat, so that health conscious people can afford to eat
Customers can choose their spice levels.
Weaknesses
The prices on the menu might prove unaffordable to many people
Lack extensive marketing activities
Lack of appeal to vegetarians because they focus more on chicken items
Opportunity
Growing market
Changing Indian lifestyle
Potential to explore the Indian market because Indian people are more open to try new food.
Threats
Loyalty enjoyed by present competitors
Consumers are becoming more health conscious
Strong competitors
Mature industry
Marketing objectives
1. Generate at least $70,000 in sales per month.
2. Maintain steady, positive growth each month.
3. Achieve a growth strategy of one store per year.
4. Increase the number of new customers who are turned into long-term customers.
Target market
Nando’s can segment its market into three target populations:
Individuals: patrons that prefer dining by themselves.
Families: people coming in groups, either as friends or as a group of relatives dining together.
Take out: people who prefer eating in their homes or at different locations such as workplace.
Proposed marketing strategy
Nando’s is a big brand that requires less effort and tools in promoting itself but in the marketing world, only those brands that sell are promoted and advertised. Nando’s will use advertising, public relations, events, and customer relationship management. Nando’s entered India through Indege Hotels and will use the brand image. Nando’s will do banner ads, direct mail, and inserts on G.E channels, showing adverts in multiplexes. The chain will also use stars to promote the brand. In addition, advertising in leading newspapers and local magazines and Yellow Pages would also prove helpful.
Public relations efforts will include:
Advertise by word-of-mouth.
Develop distinctive business card that promotes the brand.
Promote the culture of talking to people in the work force.
Develop an informational brochure.
Give specialty items such as calendars that include your name and a program invitation.
Get articles of Nando’s in magazines, newspaper columns, or journal articles.
Get involved in professional, civic, political, social, and recreational organizations to create awareness and develop business contacts.
Customer relationship management
Conduct a survey on past patrons to get feedbacks and ideas.
Send celebration and birthday cards to clients to remind them about Nando’s.
Organize contents like food preparation competition and include some of the foods on their menu.
Give regular customers special membership cards that would give them a discount of 15% if they come on weekends.
Send reminder postcards to patrons to encourage them to come again.
Events
Organize a media event and invite the press.
Sponsor community events.
Nando’s can also organize such as chilies eating competition and reward winners with a gift coupon for a meal in Nando’s.
Offer discounts to regular customers on the birthday anniversary of the outlet.
Works Cited:
Enz, Cathy. Hospitality Strategic Management: Concepts and Cases. Hoboken, New Jersey: John Wiley and Sons, 2009.
Luther, William. The Marketing Plan: How to Prepare and Implement it. New York, NY: AMACOM Div American Mgmt Assn, 2011.
Nando’s Restaurant 2012. Nando’s Restaurant International. 5 Nov. 2012 <http://www.nandos.com>
Sachitanand, Rahul. “KFC to Focus on Innovation: Targets Youth to Build Brand Loyalty & Fight Competition.” The Economic Times on the Web 18 Jan. 2012. 5 Nov. 2012. <http://articles.economictimes.indiatimes.com/2012-01-18/news/30639252_1_kfc-chicken-chain-indian-youth>.
Walker, John. The Restaurant: From Concept to Operation. Hoboken, New Jersey: John Wiley and Sons, 2007.
