Introduction
Unique Selling Points of Nando’s will be stated in this report, including the marketing strategies of the company. Nando’s is one of the best food chains in the world, and people like their special African Chicken dishes with secret sauces that increase the taste of the chickens. They always provide fresh chickens that make the taste of their chicken better.
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Unique Selling Points (USP) of Nando’s:
Decent Chicken: Nando’s decent chicken is the key USP of the restaurant because the chicken is not frozen and pumped with chemicals (Guardian News & Media Limited, 2020). The restaurant serves fresh chicken in front of customers quickly, and the taste of the chicken is extra hot, medium and hot. Even mango and lime flavour are also used according to customers’ demand and plain chicken are also served.
Teen appeal: Often restaurants in the UK do not welcome under 21s in their restaurants to spend time. Nando’s encourages teenage people to visit their restaurants and promote them by providing free refills of fizzy drinks (Guardian News & Media Limited, 2020). The teen-appeal increases young customers of Nando’s UK, and the spicy hot chicken dishes make the young people highly satisfied.
Easily reached restaurants: The 392 restaurants of Nanod’s are easily reached restaurants, and people can visit them easily with available transport facilities that increase the customers’ number of them (Nando’s Statistics, 2020). Customers visit Nando’s more after getting their restaurants near their hand.
Friendly atmosphere: Nando’s have a friendly atmosphere that makes both employees and clients happier (Nando’s Statistics, 2020). Being happy employees delivers outstanding services to clients, and clients get highly satisfied because of the services they get from Nando’s. It helps Nando’s to generate more revenue than competitors.
Marketing strategies of Nando’s:
Nando’s use different type of marketing tactics that helps them to get more customers in their restaurants. The useful marketing tactics of Nando’s are evaluated below:
Arrange competitions to bring more customers: Sometimes Nando’s arrange different types of competition and provide prizes to make customers more loyal to them. For instance, Nando’s has arranged a competition which was dining at all their outlets across the world and the prize of a lifetime supply and one person won the competition by visiting their all restaurants in the UK (Referral Candy Blog, 2020). This competition encouraged many people to visit Nando’s, and these types of unique marketing tactics have made Nando’s capable of achieving £1 billion in revenue in the UK for the first time (Insider Publications Limited, 2019).
Reward Card: Reward cards of Nando’s are another unique marketing tactic of the restaurant. For instance, holders of the black/hi-five card can enjoy the chicken of Nando’s for a lifetime with four friends (Referral Candy Blog, 2020). Different types of customers get more attracted to the restaurant than competitors because of the reward cards. As a result, Nando’s have achieved a growth rate of 8.4% in the UK (The Caterer, 2019).
Engage audience through social media: Nando’s have a great presence on social media, especially on Twitter they give direct reply to customers (Media Update, 2019). They also use other social media and all the social media ensures great customer engagement which makes Nando’s more proficient. As a result, the company generated 1 billion million British pounds in 2019 (Statista: 1, 2020).
Marketing Segmentation of Nando’s:
Marketing segmentation is the process of dividing the market according to demographics, interests, buying habits, financial stability, perceptions and other and other factors. Market segmentation helps companies’ marketing teams to make proper tactics to reach customers. There are different types of ways to segment the market such as: geographic, behavioural, psychographic, and demographic.
Nando’s apply two types of market segmentation such as: demographic and geographic (Wingrove, and Urban, 2017). These are analysed below:
Demographic segmentation: Demographic segment is the process in which customers are divided on the basis of age, gender, buying power, nationality and life cycle. Nando’s focus is on generation Y whose ages are from 18-30 and generation X of age 30+ customers (Mhlanga, 2018). The gender of customers is both male and female furthermore their income level is medium to high. The customers of Nando’s target are graduates, and their occupation is a young professional or young family. The social class of the customers are middle class to upper class because lower class people cannot afford Nando’s because of the higher price. This market segment brings higher revenue for the company so it conducts demographic segmentation.
Geographic segmentation: It is the process of market segmentation in which markets are categorized on the basis of geographic borders. Nando’s segments its market through geographic segmentation besides demographic segmentation (Mhlanga, 2018). All outlets of UK and Ireland Nando’s are situated in large retail centres and have high street locations that help them to get the targeted customers of medium to a higher status. On the other hand, KFC, Burger King and other competitors use mixed locations instead of large retail centres. Nando’s geographic segment helps them to retain customers and maintain higher sales rates.
Nando’s Positing in UK Market
Perpetual Mapping of Nando’s:
It is seen in the above-stated graph, Nando’s delivers food of good quality, and the fresh chicken of the restaurants helped them to achieve a leading position in the UK market because competitors do not provide the fresh chicken that the restaurant provides. Because of the quality of the food, the price of Nando’s is higher than other competitors, and customers are ready to pay the higher price. Pizza Hut delivers food of medium quality, and the prices of the foods are reasonable. Whilst, Burger king, MC Donald’s and KFC delivers average quality foods at lower price furthermore, Hard Rock Café delivers foods of lower quality, but the price is high than the quality.
Marketing Purposes of Nando’s
Nando’s produces Portuguese Peri-Peri chicken dishes which are made with Peri-Peri chillies, and the chicken is fresh. The restaurant does not refreeze chicken or does not use chemicals to preserve the chicken, so customers love the healthy fresh chicken of the restaurant. They also serve special sauces with the chicken dishes, and the price of Nando’s food is reasonable on the basis of the quality. Because of the healthy and quality foods, the restaurant has become one of the leading restaurant brands of Nando’s and competitors are unable to serve fresh foods that the restaurant serves. As a result, they have achieved £1 billion in revenue from the UK market (Insider Publications Limited, 2019). Nando’s can be more profitable by serving people with their full potential. The restaurant has to focus on initiatives which will increase its brand awareness and profitability. The initiatives Nando’s should focus on are evaluated below:
Provide online service from their restaurants: Nando’s has started providing online delivery through ‘Deliveroo’ some days, from 6 restaurants belonging to Manchester and London (LAD BIBLE, 2020). The demand for online services is increasing drastically, and 70% of customers like to purchase food through online delivery from direct restaurants (Hospitality Technology, 2020). It means that Nando’s should focus on providing online delivery from other outlets to capture the customer base who order online foods. By getting online customers, the restaurant will be able to generate outstanding revenue because the online customers market will be broader in future.
Innovating new foods: Nando’s is a restaurant which is specialized in making peri-peri chicken African dishes but many customers do not like the taste of the chicken dishes and do not purchase the foods of the restaurant. The restaurant should focus on innovating new foods with new flavour which is different from the taste of peri-peri chicken. New foods will attract existing customers, including new customers because existing ones will be interested in trying the dishes. Innovating new foods will create more customers for Nando’s, and the sales of the restaurant will increase enormously.
Social media campaign: Nando’s is active enough on Twitter and directly replies to their customers, but they should be activated on Facebook like Twitter (Facebook, 2020). 44.84 million Residents of the UK use Facebook, and it is a great opportunity for Nando’s to stay connected with the huge population of the UK (Statista: 2, 2020). The restaurant will be able to stay connected with the customers easily and promote their restaurants through Facebook in order to increase their market share in the UK.
Ensure presence in small cities of the UK: Nando’s have outlets in large retail centres in big cities of the UK, but they should open outlets in the small cities of the UK. Competitors of the restaurant have outlets in small cities that increase their sales and market share. By targeting the small cities of the UK, Nando’s will be able to generate higher revenue because these areas have the potential to make the restaurant more profitable.
Increase vegetable dishes for vegetarians: There are 2.9 million vegetarians living in the UK, and it refers to a great market for Nando’s (Truly Experiences, 2020). The restaurant has a limited choices for vegetarians therefore people avoid going to the restaurant. By adding more vegetable dishes to Nando’s menu, the restaurant will be able to increase its customers. As a result, the market share of the UK will rise because of vegetarian customers.
Recommendation on Nando’s Marketing strategies:
Marketing mix recommendation for Nando’s
The marketing mix has seven elements of marketing such as price, place, product, promotion, people, process and physical evidence.
Price: Nando’s provides food within a reasonable price quality of foods. The price of peri-peri chicken starts from £7.35 in the UK (Menu with Price, 2020). After comparing with other competitors of Nando’s it is found the price of the foods are a little higher than the competitors, and the customers who just want good service go to the customers because of the lower price. It seems that Nando’s should focus on providing foods at a lower price to attract budget-conscious customers toward them.
Product: Nando’s is the only fresh chicken provider in the UK and serves delicious chicken. Its signature food is peri-peri chicken dishes that come with extra hot, hot and medium tastes with so many herbs and the dishes have great demand in the UK. To increase more demand in the UK, Nando’s have to introduce new chicken dishes and vegetable dishes on the basis of customers’ choice. It will increase their revenue highly.
Promotion: Nando’s uses internet marketing, including traditional marketing, and they are most active on Twitter. The restaurant has to focus on Facebook and other media, such as Youtube, to promote their foods more because strong promotion on Facebook and Youtube will increase customers enormously.
Place: Nando’s have outlets in large retail centres which have high street locations and get so many city customers. They should focus on small cities in the UK to capture more customers in the market. By creating customers in small cities, Nando’s will be able to compete with competitors strongly.
People: Nando’s has experienced chefs and employees. The experienced employees of the restaurants serve outstanding customer service that makes customers satisfied with the services. Nando’s should arrange training for the chefs to make them capable of making new foods which customers will like, and the revenue of the restaurant will be enhanced.
Process: Most of the restaurants of Nando’s across the world are franchised, and some are managed by them. It should focus on expanding business with direct execution of the restaurants to maintain the quality of their foods because franchises can compromise on the quality which will harm Nando’s reputation.
Physical Evidence: The design of all Nando’s outlets is unique than one and the interior designs are exclusive. The design and decoration of the outlets make customers feel good when they are in the outlets, which encourage customers to spend more time and visit the outlets again. Nando’s have to conduct these type of exclusive interior, and outside decoration attracts more customers to their restaurants and increase market share.
Reference
Guardian News & Media Limited, 2020. How Nando’s conquered Britain. Retrieved from: https://www.theguardian.com/lifeandstyle/2010/may/16/nandos-fast-food-chipmunk-tinchy [Assessed on: 20 May 2020]
Nando’s, 2020. For the planet. Retrieved from: https://www.nandos.co.uk/explore/being-sustainable/planet [Assessed on: 20 May 2020]
Nando’s Statistics, 2020. Rate your Nando’s. Retrieved from: https://www.rateyournandos.com/nandos-statistics [Assessed on: 20 May 2020]