Strategic Marketing Plan for Nando's: A Case Study

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Strategic marketing
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Executive summary
The study was conducted in target to make marketing strategic for Nando’s. Proper ways to use
elements in marketing mix were described and adaption was chosen. CBBE model has been
identified as the suitable brand equity model for Nando’s and lastly three IMC methods were
identified as best option and evaluation techniques for advertisement’s effect was discussed.
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Table of Contents
Introduction......................................................................................................................................4
1. Adaption and standardization of marketing mix.........................................................................4
2. CBBE model................................................................................................................................6
3. Integrated communication mix and methods...............................................................................7
4. Measurement of success..............................................................................................................7
Conclusion.......................................................................................................................................8
Reference list...................................................................................................................................9
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Introduction
The study will focus on strategic marketing and adaption of marketing mix for Nando’s. It will
find a way to build its brand equity. Importance of IMC will be provided and critical analysis
will be done on three IMC techniques. The success of Nando’s is to be measured by considering
some factors (nandos.com, 2019).
1. Adaption and standardization of marketing mix
Adaption of marketing mix deals with adapting to the change in market and including it in
marketing mix elements of the product. In standardization, there is no change in product and the
company assumes that every customer accepts their product. Nando’s should use adaption of
marketing mix. It is applicable in case of change of food habits of people in fast food market.
Elements Nando’s McDonalds
Product Nando’s should study local
market demand in fast foods
and assess what their local
competitors are offering to
customers. This will make
their fast food product line
better (Ronquest-Ross et al.,
2015).
McDonalds researches on
various food spices and
ingredients to make it better.
Price Nando’s should adapt
dynamic pricing in their food
items because it will let them
set prices according to demand
of public den (Boer, 2015).
McDonalds uses competitive
pricing because they can set
prices by assessing price of
their competitors.
Promotion Below the line (BTL)
promotional techniques should
be used to capture domestic
market by hosting events
McDonalds uses social media
and TV advertisement to
campaign about their products
(Sugiyama et al., 2015).
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about their food products.
Place They can set up more shops at
domestic areas to reach more
customers easily because they
will reach customers at
domestic area easily.
They find attractive locations
at global places and assist
their franchisees to refurbish
their food joints to attract
more customers (nandos.com,
2019.
People Nando’s will have to train
their food joint staffs to make
sure that they know about
preferences of local people.
This will let them cater to their
needs in better way.
Staffs at global food joints are
aware of preferences of those
country’s people to give
efficient services. They go for
training to achieve this.
Process They have to upgrade their
delivery system and reach
customers within 30 minutes.
This will let them serve more
customers in domestic market
at faster rate (West et al.,
2015).
McDonalds upgrades their
franchisees with latest
technological equipments to
make their delivery easier.
This increases customer
satisfaction at great extent.
Physical evidence They have to find unique way
to display their foods and can
take help from experts to
design special display
methods. They can introduce
any cultural elements of the
domestic country.
They try to make atmosphere
of food joints better by
upgrading it by global
standard (Cao and Kim, 2015).
Table 1: Marketing mix for Nando's
(Source: Created by the learner)
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2. CBBE model
Figure 1: CBBE model
(Source: Farjam and Hongyi, 2015)
Brand salience (Identity)
Nando’s will have to create their identity in fast food market. This can be achieved by spreading
awareness of their existence by understanding segments of market. Customers should be able to
perceive the brand properly and see it as a unique company. They have to communicate with
customers and make them understand that Nando’s sells food products, which customers crave.
Brand meaning
Nando’s will have to increase their performance and develop imagery. Their food should meet
customer expectations and service quality should be increased to make their brand meaningful.
They need to define and create a better personality for their brand by meeting needs of customers
in psychological level (Farjam and Hongyi, 2015).
Brand response
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Nando’s should evaluate reactions from customers after consuming their food and they have to
understand customer’s thought on their food products. Customers will judge their food products
according to the relevancy of Nando’s food with their needs. Nando’s will have to take
feedbacks from customers and work on making the brand better by correcting their
shortcomings.
Resonance
Nando’s will have to develop relationships with customers by making them understand that they
are valuable to this organisation. They can use social media to reach customers and engage them
more with Nando’s. This will increase behavioural loyalty and customers will go for repeat
purchases.
This equity model can only be successful for Nando’s if they understand customer requirements
and improve their products and services according to it. A faulty market assessment will not
increase their brand equity, which a drawback of this method.
3. Integrated communication mix and methods
Integrated communication mix makes sure every element of marketing mix is integrated, while
promoting a product. This valuable for launching a product, as it increases the chances of success
for a new product. Nando’s can opt for BTL methods such as hosting events to have better
marketing communication. This can make their new product more successful but drawback of
this method is people may not be aware of this event and presence can be low. Cost of this
process is very high also. ATL methods such as television advertisement and online application
promotion can be used and it can get increase their presence in market. This method is costlier
therefore, it is a quite a disadvantage. Personal promotion is a good IMC method and Nando’s
can use this to promote the company separately to each people. The time consuming procedure is
the main disadvantage of this method (Sugiyama et al., 2015).
4. Measurement of success
Their success can be measure by assessing total number of people have seen their advertisement.
They can refer to Google analytics to know the amount of hit in their links and can count website
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visits. They have to identify costs for advertisement they bared and number of positive reaction
from those advertisements will indicate their success. They need to make sure, if their message
quality was clear and unique to target audience and if it is understandable, then their success can
be indicated from this. It is important to measure economical success for this new product and
Nando’s will have to calculate the rate of return from this new item (Andrews and Shimp, 2017).
Conclusion
The study suggested a proper method to use marketing mix for Nando’s by comparing it with
McDonalds. CBBE model has been suggested and it is found that by focusing on customer
needs, Nando’s can increase their brand equity. Three IMC methods has been chosen to increase
their marketing communication and measurement process such as audience reach and cost to
measure success.
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Reference list
Andrews, J.C. and Shimp, T.A., 2017. Advertising, promotion, and other aspects of integrated
marketing communications. Nelson Education.
Cao, Y. and Kim, K., 2015. How do customers perceive service quality in differently structured
fast food restaurants?. Journal of Hospitality Marketing & Management, 24(1), pp.99-117.
den Boer, A.V., 2015. Dynamic pricing and learning: historical origins, current research, and
new directions. Surveys in operations research and management science, 20(1), pp.1-18.
Farjam, S. and Hongyi, X., 2015. Reviewing the concept of brand equity and evaluating
consumer-based brand equity (CBBE) models. International Journal of Management Science
and Business Administration, 1(8), pp.14-29.
Nandos.com. (2019). Nando's | The official worldwide home of Nando's. [online] Available at:
https://www.nandos.com/ [Accessed 10 Jun. 2019].
Ronquest-Ross, L.C., Vink, N. and Sigge, G.O., 2015. Food consumption changes in South
Africa since 1994. South African Journal of Science, 111(9-10), pp.01-12.
Sugiyama, N., DeMerchant, M.P. and Sadja, A.L., Sony Corp, 2015. TV social network
advertising. U.S. Patent 8,930,992.
West, J.J. and Erb, J.M., DJ Burgers, Inc., 2015. System And Method For Food Delivery. U.S.
Patent Application 14/080,684.
Appendix
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