Marketing Strategies Comparison: Pret a Manger vs. Nando's - Analysis

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This report provides a comparative analysis of the marketing strategies employed by Pret a Manger and Nando's, two prominent players in the fast-food industry. The introduction highlights the crucial role of marketing strategies in business success, especially in competitive markets. The report delves into the specific marketing approaches of each company, examining their target markets, promotional activities, and pricing strategies. It also explores how both companies utilize customer feedback to refine their strategies. Furthermore, the report applies Porter’s Generic Strategies to analyze how Pret a Manger and Nando's achieve competitive advantages through cost leadership, differentiation, and focus strategies. The marketing actions of both companies, including the use of CRM and unique food offerings, are discussed. The conclusion summarizes the key findings, emphasizing the importance of effective marketing in the industry. The report also references various academic sources to support its analysis.
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Marketing Strategies
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Table of Contents
INTRODUCTION...........................................................................................................................3
Marketing strategy of Pret a Manger..........................................................................................3
Marketing strategy of Nando's company....................................................................................4
Porter’s Generic Strategies..........................................................................................................5
Marketing actions of Pret a Manger and Nandos........................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Marketing strategies plays most important role in the success of every business as they
support enterprise in developing awareness in the market. Further, due to rise in level of
competition in the market it has become difficult for every business to survive in the market.
Apart from this, through effective marketing tools businesses are increasing at worldwide
presence and it provides base in accomplishment of desired aims and objectives(Shankar and et.
al.,2012) . The overall strategies developed by every business differ from each other and has
direct impact on overall performance of company in the market. Further, the marketing actions
being considered by the companies are also considered to be fruitful such as loyalty schemes etc
through which large number of customers can be retained easily. In the present study two
companies have been chosen namely Pret a Manger and Nandos. Pret a Manger was opened in
Hampstead in the year 1984 where the entire restaurant focused on gourmet, ready to eat food
and the store design was inspired by steel and chrome upmarket sandwich bars (Ferrell and
Hartline, 2012). Both organization put their focus on customer satisfaction rather than
productivity. For this they time to time take a feedback and as per customers review firm change
their strategies. On the other hand, Nando’s is a international casual dining restaurant chain
originating from South Africa. Restaurant is generally specialized in chicken dishes with lemon
etc. The entire report focuses on comparative analysis of both the companies in terms of their
competitive strategies along with marketing tools adopted.
Marketing strategy of Pret a Manger
Nowadays fast food industry growing so fast and fulfils the demand and manage their
customers. The market strategy of Pret a Manger company is based on how this organisation
raise the numbers of their customers and also increase their profitable ratio into the competitive
market. Furthermore, this company market also includes the input of the firm which include
employees welfare and market dynamics (Lusch and Vargo,2014). For better development the
planning and development department put their focus on target market and promotion activities.
For better development firm also provide loyalty vouchers to their customers where they can buy
any food item into low cost (Fifield, 2012). By applying this thing firm can easily create a
positive relationship with their customers and also raise their brand image.
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Marketing strategy of Nando's company
This organisation is providing different kind of food item in their restaurant. So for better
development this organisation market strategies are based on their promotions skills. For this the
planning and development department provide different combos to their customers and also open
new website (Christopher, Clark and Payne,2013). By using his website customers can easily
book their order and get all the information which are based on latest combo's. Furthermore, the
head department time to time take a feedback for their customers and as per their reviews
company change their market strategies.
The both organisation used different method for achieving their goals and they are as
follows:
Target market approach
Pret a Manger target market is based on the teenagers and youngster and the main reason
behind this is approximately 60% youngster like fast food items (Boone and Kurtz, 2013). For
fulfil the demand of target audience company provide their all product into affordable price
ranges so they all can easily afford it. on other hand, for fulfil their demand organisation take a
feedback from their customers and according to the reviews firm change their marketing
strategy.
Nando's company target market is based on all types of group and for this in their dinning
hall head department provide all king of food items with affordable pries (Shank and Lyberger,
2014). By this they can easily fulfil the all kind of demand which comes from their customers
Segmentation
Pret a Manger company first divide the whole market as per customer, like and dislike,
need and changing behaviours etc (Chaffey and Ellis-Chadwick,2012). than select the best
appropriate basis for the segmentation doing this the planning and development department can
easily divide their work like what they have to do and which process is good for the firm. This
company segmentation is bases on customer market and their need and desire.
Nando's segment criteria is based on schycography and for this planning and
development department time to time take a review from their customer and according to their
feedback change the interior of restaurant, menu card and add some dishes in their restaurant
(Mullins,Walker and Boyd Jr,2012).
Promotions activity
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Per a manger follow all the latest trends in their marketing (Kotler and Keller,2011). For
this they use digital marketing where planning department use social media sites, what app,
banner, television. By using this they promote the latest food items and raise their profit.
Nando's company also used digital marketing where they update all the information about
their new combos and restaurant information. On other hand, planning department also consider
pamphlets, banner, advertisement and provide loyalty vouchers to their permanent customers.
Prices
This thing plays an important role and for this both organisation follow the same
structure. In this, for the new produce head department select a lower range and the main reason
behind this is customers can easily attract from the lower range products (Perreault Jr, Cannon
and McCarthy,2013). After some time when their food products ad services will famous in the
competitive market so they raise the prices and cover up their losses. For select the appropriate
price development department first analysis the market situation and as per the research they
select an appropriate price for their food products and services.
Seminars and program
In this both organisation some programs and promote their food products item,
hospitality services (Fahy and Jobber, 2012). By doing this they can easily promote their all new
products and get the attraction of the customers.
By following all the things Pret a Manger and Nando's company beat the competitive
business world and raise their profit. Moreover, by taking time to time feedback both
organisation know their positive and negative points and as per the customers review firm
change into positive (Mooradian, Matzler and Ring,2013). Furthermore, by applying this thing
customers create a positive relationship with their customers.
Porter’s Generic Strategies
For a better development Pret a Manger company used Porter’s Generic Strategies. This
strategy is based on three elements which are as follows:
Cost leadership
For achieving the competitive advantages company provide high quality food items o
their customers and also maintain the range of their food item so by this every customer ca easily
purchase it. in low cost company can gain their benefits in two ways (Hill,2012). The first one is
absed on higher return where firm sell their products and services and also increased their
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makrket shares. Second one is based on competitive advantages (D Hartline, 2011). For
achieving the leadership company follow some kind of steps and they are as follows:
ï‚· Improve the customers services.
ï‚· Tim to time take a feedback from their customers and according to their reviews change
in their strategies.
ï‚· Utilise all the raw material.
ï‚· Avoid the leakages and control the cost.
Differentiate leadership
In this strategy Pret a Manger company divide their whole work into the team and allot
one team leader who guide their employees like what they have to do and which process is good
for the work. Company put their focus on customers services rather than productivityn(Hoffman
and Novak,2012). For achieving the success firm follow some steps and they are as follows:
ï‚· Planning and development department of Pret a Manger company put their concentration
on new research which are based on food item.
ï‚· Organised training secession for the employees.
ï‚· Change the packing styler and raise the profit by attracting the customers.
Focus strategy
pret manger company focus strategy is based on how they achieve their cost and
leadership skill on time. This strategy is based on assumption and where it shows thy this
strategy based on narrow engagement and focused on actual need and demand of customers
(Kajale, 2012). This strategy has some drawback and the major one is based on production level.
In this strategy Pret a Manger follow some steps and they are as follows:
ï‚· Change the food item and also include diet food item because the customers of UK
become more health conscious.
ï‚· Due to high human resources it is easy for the organisation to maintain all the things into
appropriate manner.
ï‚· Company can raise their partnerships skills with the other restaurant and raise their brand
name.
ï‚· By applying different promotions' strategy firm can create a positive relationship with the
customers and also raise their profit.
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ï‚· With human resources' department firm can easily recruit more person in their restaurant
and this department can trained them in the work by providing them best training.
This is a type of strategy which is been adopted by organizations with are very helpful in
adopting strategies which enable to attract customers (Shankar and et. al.,2012). With this
respect, there are three types of generic strategies which falls under this theory. These strategies
are been adopted by Nandos in order to attract customers:
Cost leadership: This is a type of strategy which is adopted by the organizations in which they
deliver their product and services at low cost but the quality remains the same. According to this
strategy, this is one of the most effective strategy as there are many organizations which provide
similar products and servicesn(Ferrell and Hartline, 2012). Through this cited firm that is Nandos
will be able to make their attract customers (Lusch and Vargo,2014). Mostly people prefer to
have products which are been provided to them at low cost but in high quality so this will be
helpful for the cited firm to achieve their goals and objectives.
Differentiation strategy: According to this, strategy, the organizations aim at developing their
new range of product and services. This is very helpful in attracting customers. However, the
firm has to make intensive research so as to know the changing taste and preference of
customers. Only when organizations conduct market research, then they get to know the areas in
which they come up with new product and services (Fifield, 2012). Nandos has to invest highly
so that they will be able to develop new product or services. This way they will be able to attract
customers effectively and efficiently.
Focus: According to this, organizations has to make use of their promotional strategies
effectively so that they will be able to attract their customers. Organizations should develop
advertisement and in this context, they can make use of different tools like television, radio,
newspaper, etc (Christopher, Clark and Payne,2013). as this will enable to attract customers
effectively and efficiently. Promotion and advertisement are very helpful in develop good
perception among the mind of customers and in attract them.
Marketing actions of Pret a Manger and Nandos
In order to perform efficiently in the market both the restaurants have undertaken
effective marketing tools where CRM strategies being employed are effective. Further, to
develop healthier relationship with target market large numbers of services are delivered to them
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as per their expectations (Boone and Kurtz, 2013). Moreover, the food items served by both
companies are quite unique and they are as per trends in the market. Apart from this, Pret a
Manger as a restaurant focuses on obtaining feedback from customers on continuous basis and
with the help of this they determine whether modification in the product range is required or not.
Apart from this, business focuses on social trends and it is ensured that each and every customer
is served as per need. Further, product and service development of the enterprise takes place on
continuous basis and this is one of the main reason behind success of company in the market.
Moreover, Nando has adopted social media along with other advertisement as a tool in order to
build healthier relationship with the target market (Shank and Lyberger, 2014). In short, it has
allowed business to gain competitive advantage. On the other hand, with the motive to enhance
brand loyalty in the market both the restaurants focuses on service style along with the quality
being provided in the food along with service etc. The food being served is of high quality and
this directly provides customers value for money experience. Apart from this, expansion of Pret a
Manger has enhanced loyalty in the areas where it operates. Customers are provided large
number of options in terms of food and consumption of same enhances brand loyalty. Therefore,
it is also favorable for business and has become easy to sustain in the market for longer period.
Further, both the businesses have done branding in different manner where Pret a Manger
focuses on quality and Nando’s focuses on the kind of services being offered to the target market
(Chaffey and Ellis-Chadwick,2012). In short, both the brands are well appraised in the market
for the range of food items being served. It has lead to rise in level of customer satisfaction
where companies are able to retain its loyal customers in the market. Due to this reason both the
companies are well known in the market for the food items being offered.
In order to understand about the branding strategies of both the businesses the model
proposed by Keller is quite effective which takes into consideration series of stages such as:
Step 1 Brand identity: Who are you – It is the first step where main goal of business is to
create awareness in the market. It is the stage where Pret a Manger and Nando established their
businesses in the market (Mullins,Walker and Boyd Jr,2012). Further, they focused on
developing awareness in the market so that large number of customers can purchase services and
this has enhanced market performance of the business
Step 2 Brand meaning: What are you: It is the next stage where business communicates
its brand meaning and what it stands for. Further, Pret a Manger and Nando totally ensures that
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its brand is capable enough of delivering high customer experience along with large number of
benefits through which target market can be retained easily.
Step 3 brand response: What do I Think: Considering this step both the companies have
provided large number of benefits to the customers (Hill,2012). Further, target market is well
satisfied with the range of services offered and they prefer to consume food on continuous basis.
Therefore, in this way both the companies are directly benefitted by providing favorable
response to their customers as per their needs and expectations.
Step 4 brand Resonance: It is the last stage which highlights the connection between
customers and brand. So, Pret a Manger and Nando has develop strong connection with its
customers where product modification is totally done on the basis of customers requirement (D
Hartline, 2011). Apart from this, majority of the customers are brand loyal and they are indulged
into practices of repeat purchase. Apart from this, it has acted as development tool for the
business where companies are enjoying the benefit of higher profits along with the market share.
Therefore, on the basis of brand building model it can be stated that both the businesses
are efficient enough in developing brand in the market (Hoffman and Novak,2012). Further,
companies are obtaining large number of benefits with the help of this. In short, both brands have
provided remarkable experience to them and is value for money also. Companies are retaining
customers on the basis of brands where social factors along with market trends are necessarily
considered for satisfying their overall requirement in the market and it has become reason for
success also.
4P'S
It is a part of marketing mix and it known as price, place, product and promotions. By
applying this things company can easily determine their marketing elements like how they
promote their new products and which prices is suitable for their services. On other hand, it is a
set of some tools which are based on some tactical and marketing environment (Kajale, 2012).
Pret a Manger and Naindo's company follow these 4 P's and they are as follows:
Product
The first element of marketing mix is based on product. Pret a Manger provide all fast
food items to their customers and also include all quality ingredients in it. the services which are
provided by the organisation is totally satisfies and also head department put their main
concentration on their need and desire of their customers (Shankar and et. al.,2012). For
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example, UK customers like rices products so for them head department change their ingredients
and add rice. By this they fulfil the demand of their customers and also create a positive
relationship with them.
Nando's company also put their focus on customers' satisfaction. For this, in their
restaurant they time to time do so many changes as per customers' feedback (Velasco, Hernandez
and Aguilar, 2016). Moreover, in their dinning hall they also open music section, by these
customers can enjoy the atmosphere and also enjoy the food. As per customers comments head
department also change the taste of food and create open kitchen. By this, customers can see he
production of their food item.
Moreover, both organisation change their packing style, features of presentation and also
started after sale services. By applying all these things company raise their brand image into the
competitive marker and beat their competitors.
Price
Prices is the second element in marketing mix but it plays most important role. The main
reason behind this is customers purchasing capacity is based on this element. In this organisation
select which price is suitable for their clients (Han,Benardand Chahine, 2014). Both organisation
launch their new products and services in low prices and after some time when their new product
will famous in the market the head department raise the prices and cover up their all losses. In
this elements company also considered their discount and credit policies. Furthermore, both
organisation time to time provide discount coupons to their permanent customers and also
provide bumper offers where customers can buy their food products by using the loyalty and
discount coupons. Prices is a prime element in the marketing mix (Charlesand Venkadesh,2013).
By applying this element company get their goals and beat their competitors.
Place
This element clear the position into the competitive market and this position is based on
which products and services are provided by the organisation and how company fulfil their
demand. Pret a Manger and Naindo's both organisation restaurant situated in good location. Due
to this, all customers can easily get their fast food and other items (Diamond and Cantrell,2014).
On other hand, both organisation provide 24 hour home delivery services to their customers.
Moreover, by taking the help from retailers head department of both organisation can easily get
their raw material on time (Christopher, Clark and Payne,2013). Pret a Manger organisation used
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two level distribution channels where customers give their order to head department and then
they provide their services. On other hand, Naindo's company follow three level of distribution
where customer give their order by using restaurant website and then head department provide
Customers food item to delivery boy and then finally delivery boy provide their order to
customers.
For achieving the long term goals place also plays a major role (Christopher, Clark and
Payne,2013). The main reason behind this in UK lots of outlets are available and they all are
provided the same facilities to their customers. By selecting appropriate place company can
easily beat their compositors.
Promotions
By applying appropriate promotions activities booth organisation can raise their profit
and they can easily communicate with their customers. Promotions include different things like;
personal selling, advertisement and personal relations (Mullins,Walker and Boyd Jr,2012). Both
organisation used different methods and they are as follows:
Pret a Manger used digital marketing where their planning and development department
used social media sites, what app (Christopher, Clark and Payne,2013). On other hand, they also
used banner, advertisement for promotions activities.
Naindo's company also used digital marketing but this firm put their focus on banner,
personal selling, for person relationship head department provide discount coupons to their
customers (Perreault Jr, Cannon and McCarthy,2013). By applying these things company raise
their profit and also create a positive relationship with thrive customers.
CONCLUSION
According to the present report it has been concluded that by applied appropriate
marketing strategy Pret a Manger and Nindo's company easily beat their competitors. Moreover,
with the use of different strategies and models firm can easily know their positive and negative
points. Organisation time to time take a feedback from their customers and as per customers
reviews head department change their marketing strategies. Moreover, organisation put their
focus on customers' satisfaction. For this planning department provided lots of schemes to their
customers like loyalty vouchers, discount coupon etc.
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REFERENCES
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Boone, L. and Kurtz, D., 2013. Contemporary marketing. Cengage Learning.
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SUSTAINABLE BUILDINGS. International Journal of Logistics & Supply Chain
Management Perspectives. 2(1) p.83.
D Hartline, M., 2011. Marketing Strategy. Sage.
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Chains: Creating Shared Value To Enhance Marketing Success.
Fahy, J. and Jobber, D., 2012. Foundations of marketing. McGraw-Hill Education.
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