Analysis of Strategic Marketing for Nando's Expansion in Portugal

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This report provides an executive summary of Nando's strategic marketing efforts, specifically focusing on its expansion in Portugal. The analysis covers the adaptation and standardization of the marketing mix, including product, price, place, promotion, people, process, and physical evidence. It also examines the application of the Customer Based Brand Equity (CBBE) model, detailing brand identity, meaning, response, and resonance. The report further explores the role of integrated marketing communications and measures marketing success through consumer lifetime value. The findings highlight the importance of public relations and environmental factors for business growth, concluding with recommendations for Nando's to enhance its marketing strategies in the Portuguese market. The report emphasizes how Nando's utilizes its unique offerings, such as Churrasco BBQ marinade and PERi-PERi BBQ sauce, to cater to consumer preferences and maintain its market position.
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Strategic Marketing
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Executive Summary
From the findings from the below report it shows about Strategic marketing which helps
in reflecting different strategies that recognises choice and taste of customer's. Further, the
report found about the company Nando's which is a top most restaurant and wants to expand in
Portugal. One of the expansion is made through introducing Churrasco BBQ marinade, PERi-
PERi BBQ sauce and squeeze bottle of drinks. In order to satisfy customer's company provides
food and cuisines in terms of chicken and Mozambican cuisine. These chickens are served with
flavors like lemon, garlic, ginger and many more. However, it has identified that marketing mix
strategy in Nando's has been adapted and standardized that helps in their business expansion.
From the below findings, people and price components has a positive impact on Nando's
restaurant. In addition to this, it is found that Customer Based Brand Equity Model, has built up
powerful image in the Portugal market. From the research, it's analysed that Integrated
Marketing Communications brings awareness about food in people of the country. The below
report also describes about consumer's lifetime value method which helps in identifying
company's profit and value. Accordingly, from the findings and research about Nando's
restaurant, they should focus on their public relations and environment which grows their
business widely.
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Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
Adaptation and standardization of marketing mix:.....................................................................1
Customer Based Brand Equity Model:.......................................................................................3
Integrated Marketing Communications:.....................................................................................4
Measuring Marketing Success:...................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Strategic Marketing includes various strategies that identifies the need and requirement of
the consumer's in the market. This is a centralized approach based on customer's taste in order
to fulfil it. Further, the strategies are performed to attain the goals and objectives of Nando's
company. In addition to this, Nando's is an international chain in restaurant which has opened it's
first UK dining restaurant in 1992. Further, they flourished in serving to the people of Portugal
country. Moreover, it is specialised in serving Portuguese chicken dishes by providing various
styles of it. The new products that are launched by Nando's in Portugal is also discussed below.
The report aims in describing strategic marketing in Nando's organization which helps in
satisfying taste of customer's. Further, the below report is prepared to discuss about marketing
mix strategy of the new products that are introduced in the organization. The Customer Based
Brand Equity Model applied in Nando's is also analysed below. However, the methods and
concepts of marketing mix is described in this report. Finally, the report aims in measuring
marketing success in this company.
Main Body
Nando's company has implemented various strategies in marketing process to identify
their position compared to competitors in the market (Proctor, 2014). This all planned strategy
helps in promoting their existence food and also new dishes which is based on culture behaviour
and new customers wants. They have also flourished their business in Portugal country.
Moreover, the concept of marketing mix, its method and CBBE model in Nando's is specified as
under:
Adaptation and standardization of marketing mix:
With the strategy of marketing mix, the Nando's restaurant is concentrating in providing
chickens in Portuguese style. Additionally, they have also launched new dish named Perinaise
which includes mayonnaise with uniqueness in it. This leads them in serving for long time in
Portugal market and further helps in achieving the goals of company (West, Ford and Ibrahim,
2015). They also focus in adapting and standardising the mix components that helps in leading to
higher performance level of the restaurants.
Product: In the globalised world, Nando's restaurant is running at top position by serving
delicious food. They adapted marketing mix strategy as their Chicken and related Mozambican
cuisine are in more demand. Moreover, new product is introduced as Peri- Peri sauces which
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became all time favourite food for Portugal people. To satisfy the customer's taste product
element in marketing mix is very essential. As the young generation is influenced to restaurant's
food, Nando's is in high demand. Accordingly, this restaurant in Portugal targets the group
under the age of 25 towards their delicious food (Chernev, 2018). They also added brand new
dish namely “Churrasco BBQ marinade” which has more demand by families along with the new
squeeze bottle of drinks. By serving healthy chicken, this strategy helps in making the restaurant
more successful in Portugal.
Price: The second element is price which reflects the profit of Nando's company. This restaurant
is in high demand as they provide chicken and Mozambican cuisines from lower to higher rates.
This diversification in rates makes affordable to the customer's in market. The two products
which are newly launched I.e PERi-PERi BBQ sauce that prices $4.49 and “Churrasco BBQ
marinade” is priced $3.62. This prices are set up easily by adapting the concept of marketing
mix strategy by Nando's in Portugal. Moreover, it helps in making different strategies about
skimming the prices and neutral pricing in Nando's brand ( David, David and David, 2017). The
price of the chicken and cuisines help in setting the image of food in eyes of clients.
Place: The placement of restaurant has done according to the customer's choice which helps in
increasing the profitability of company in Portugal. Nando's has opened it's restaurants in more
than 30 countries, setting the standard of attracting more customer's. In addition to this, it is
helpful to consumer's for finding their delicious chicken easily. As this new products are in high
demand by families, the products are sold at various stores and is easy for customer's to buy
quickly. Moreover, Nando's has started offering food online as it helps in lowering the cost.
Place is an essential element of marketing mix which includes various strategies like franchising
and distributing products in intensive, selective and exclusive manner (Tomczak, Reinecke and
Kuss, 2018). In order to make flexible buying for client's, Nando's has spread their food widely.
Promotion: This component is also significant in advertising their food that is chicken and
Mozambican cuisines in the market. Promotion can be done via advertising which includes
newspapers, TV, radio, magazines or pamphlets. The newly introduced products are also widely
sold as Nando's spend a huge amount in promotional process. Moreover, Nando's has maintained
the healthy relationship with public that helps in promoting their food, cuisines in Portugal. In
addition to this, by adapting marketing mix, Nando's promote their product and services through
sales organization also. If the customer's are satisfied and happy with the Nando's taste, then they
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circulate this positive review to other people (Foxall, 2014). This helps in promoting it's
restaurant widely in Portugal .
People: The employee's in the restaurant serves efficient services that satisfies their customer's.
As per this component, it helps in making clients repetitive for their chicken and it's cuisines
(The marketing mix in marketing strategy, 2018). They serves new product PERi-PERi salt and
rubs with additional services to the family sitting. Nando's undertook marketing mix strategy
which helps them in attracting more people for their services. Through this element, it helps in
identification of potential customer's to be targeted for buying their food.
Process: Adapting this strategy in Nando's, the process element helps in execution of their food
services. As the Nando's restaurant is very happy with the launched of new items in chicken and
by this marketing strategy the production and selling process is made more easier. This
procedure widely includes overall sales, distributing and paying system, maximizing profit and
minimizing costs.
Physical Evidence: The food and cuisines along with Peri Peri sauce and others marinade ranges
are deliberately and flexibly distributed to the customer's in Portugal which becomes an evidence
to the clients ( Liebl, 2018). Moreover, it helps in knowing about Nando's food to the people of
the country.
Customer Based Brand Equity Model:
This model helps in constructing the Nando's restaurant more strongly and efficiently.
The other name of this model is Keller's Brand Equity Model which is a concept that includes
four steps in it. For achieving higher performance level, this concept plays a vital role in
Nando's.
Brand Identity:
This is the first step which displays the identity and salience of the Nando's restaurant.
Moreover, this has been spread widely and well- known for their chicken and Mozambican
cuisines. In addition to this, it's main identity lies in Churrasco BBQ marinade and PERi-PERi
BBQ sauce that increases Nando's profitability in Portugal. This company is very active and
deliberate in serving their food sector. Their identity also lies in the providing double flamed
grilled chicken with different range. This make affordable for all the customer's to buy their food
in various flavours (Abratt and Bendixen, 2018). Nando's having it's own identity and brand
which helps in making the people aware of Portugal for their services. Additionally, this step
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also involves about the powerful image of Nando's which attracts more clients. The restaurant of
Nando's is highly recognised for their trendy and presentable chickens in different tastes and
colour. Moreover, African flavours like garlic, ginger, lemon and birds eye chilli is added to their
dishes which maintains it's standard high and strong. Finally, when Nando's adapted CBBE
model it increases the profitability and productivity of their firm.
Brand Meaning:
In addition to the meaning of Nando's brand, it states their performance and imagery.
This is a brand serving delicious food in varieties of chicken and cuisines. This trendy services in
this modern world helps in promoting their new food like Churrasco BBQ marinade and PERi-
PERi BBQ sauce widely. Moreover, they aim in long term strategy to serve their goods in the
market. Accordingly, by the help of CBBE model, Nando's has achieved higher productivity and
profitability in the market. Further, imagery also includes the target customer's under the age of
25 who are more attracted towards their food (Subhan and et.al, 2015). The value and standard of
Nando's restaurant is very high as compared to other competitors in Portugal. Moreover, this
added a meaning to it's company as it is a popular restaurant and people are familiar to it.
Lastly, this step helps in increasing their personality and status of the company through
their innovative and creative ideas that they present in chicken and Mozambican cuisines.
Brand Response:
In CBBE model, this step mentions the feelings and judgements towards their brand
response. The image of this brand has been set very high by Nando's to attract more client's in
purchasing their food. Moreover, the value is increasing due to it's modern and innovative ideas
in their chicken and cuisines. The additional response from customer's was for Churrasco BBQ
marinade and PERi-PERi BBQ sauce which is newly launched by Nando's. This also added
trustworthiness in their restaurant in Portugal which satisfies their customer's. As this company is
following modern concept by targeting age group under 25 they are highly obliged and experts
in their work. Customer's judgement about the brand is in terms of the food quality, superiority,
credibility and it's consideration. Their favourable response and a genuine feeling reflected in
their new African flavours I.e lemon, ginger, garlic and so on. In addition to this judgement, the
customer's respond as per their feelings which can be in emotional way. Moreover, they
expresses their view in terms of fun, warmth, excitement, self- respect, social approval or can be
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security (Felix, Rauschnabel and Hinsch, 2017). However, the CBBE model is adapted in
response to increase credibility and esteem of Nando's company.
Consumer Brand Resonance: Lastly, this step has a vital influence of customer's attachment
and intensity towards the Nando's food in the market of Portugal. Further, this helps in increasing
the customer's and makes them loyal in purchasing the same food repeatedly. Accordingly, this
company serves the chicken in modern ways effectively and efficiently. In respect to consumer's
brand resonance, it especially involves the nature of Nando's company. As they have started
delivering foods online with quick delivery, it has made this restaurant more lovable and
powerful. This brand is also available on various websites from which customer's can purchase
their food according to t heir time and perception. This helps in increasing the profitability of the
brand and sets the higher standard in the market of Portugal. Finally, there is a wide concept of
this step which helps in building the overall review and structure of the Nando's (Coffie and
Blankson, 2018) . Moreover, the customer's are satisfied and helps in behaving them positively.
This refers to strengthening each category of the resonance. In addition to this, the CBBE model
refers to behaviour and loyalty of consumer's. Secondly, it involves the special attachment of
client's towards their new and qualified food and cuisines with additional dishes Churrasco BBQ
marinade, squeeze bottle of drinks and PERi-PERi BBQ sauce. The communal sense of the
purchaser related to the brand is identified in this concept. Lastly, this helps in engaging more
customers towards their brand. Additionally, the purchasing power and sales is relatively
increased of Nando's in Portugal.
Integrated Marketing Communications:
The process of communication to evaluate comprehensive plan and standard related to
public relations, advertisement, personal selling and also promoting Nando's food in Portugal
refers to the Integrated Marketing Communications. This restaurant added new flavor with
reference to African style and also drink bottles are modified highly by adapting this method.
Moreover, IMC involves the strategy of making products more advanced and popular (Proctor,
2014). Further, for maximizing profit Nando's adapts this strategy which includes various
promotional concepts. The communication of people in Portugal from top to bottom level in the
restaurant is made flexible with the help of IMC. Moreover, brand communicative process is a
step taken at initiative stage by the management which helps in targeting more clients. The brand
can be expanded in more countries with the help of IMC process. Lastly, it helps in attracting
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more customer's directly and also in getting feedback from them. By getting the response from
client's, it is helpful for brand in knowing their strengths and weakness which can be improved
by them at first stage.
Methods:
Promotional tool: In the process of IMC, this tool is helpful in promoting food which already
exists and also new products like Churrasco BBQ marinade and PERi-PERi BBQ sauce of
Nando's through advertisement, trade promotion and many more (West, Ford and Ibrahim,
2015). Moreover, for expanding the business Nando's need to be powerful in maintaining their
relationship with the customer's in Portugal market.
Customer's Experience: Nando's restaurant also identify their customer's choice and refer to
their experiences. They are also in avail to introduce halal products in chicken items like
Churrasco BBQ marinade and PERi-PERi BBQ sauce and is becoming the advanced developer
in Portugal food concept. In order to satisfy the customer's they does not only provide chicken
but also chips and meat in other form are offered wisely.
Brand Focus: The focus of Nando's restaurant is to set the high status in Portugal in maintaining
their brand in food developer. This also reflects the corporate image of restaurants.
Advantages:
The Integrated Marketing Communications has the main importance about planning in
better communicating process (Chernev, 2018). Furthermore, it helps in bringing awareness
about the Nando's food which has newly entered like chicken Churrasco BBQ marinade and
PERi-PERi BBQ sauce in the Portugal people. The concept is widely focused in attracting more
customer's in purchasing their food. It makes possible in getting connected directly for the
response of client's. In this globalize world, it provides better and advanced opportunities for
Nando's as they serve chicken and cuisines with colourful and presentable dishes in the market.
The food products can be promoted in addition to different methods and means in the market
such as:
Direct selling: This helps in promoting the food of Nando's through communicating directly
with their clients and users. There are various elements which help in direct marketing of the
food and cuisines are catalogues, pamphlets, emails, brochures and text messages. Through this,
it has maintained selling in delicious mayonnaise with peri kick.
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Sales Promotion: In addition to increase thee number of customer's and sales of goods and
services, it helps in promoting through discount rates provided to potential client's (David, David
and David, 2017). They also offer membership and discount coupons in new items like peri
kick, Perinase with tasty mayonnaise flavoured to it for sales promotion. Moreover, special deals
on meals is also made available by Nando's for their competitive advantage.
Public relations: The main advantage of IMC in expanding business is also to maintain healthy
and wealthy relation with Portugal people by launching new products quarterly with new
flavours and taste. This also add the elements of promoting like news, events, press releases,
public appearances and so on. In relation to people's review presents the Nando's in best
presence.
Measuring Marketing Success:
The success of the company is measured by various methods in the Portugal market
(Tomczak, Reinecke and Kuss, 2018). The key to success depends upon the proper measurement
of marketing perspective which increases the brand value.
Conversion rates: This rates can be measured by determining the efforts that Nando's made in
achieving success. Different campaigns are performed for attracting more buyers towards their
existing and new food that is introduced in April 2016 to the market. In addition to this,
conversion rates help in determining the expansion of stores as it is fastest growing restaurants in
Portugal. Furthermore, they are in motive to expand their chain in Portuguese with the well
specified grilled chicken named peri-peri (Foxall, 2014). As they target group of 18 to 35
towards their food and cuisines which increases their conversion rates along with the profit
motive.
Incremental Sales: This method helps in evaluating the effort presented by Nando's in order to
increase the sales and also measures it's success. This can also be measured with the addition of
new food items that are Churrasco BBQ marinade and PERi-PERi BBQ sauce. Furthermore, this
also shows the efficiency and contribution of management in order to generate more sales for
chicken and cuisines. Overall, it helps in reflecting Nando's profitability as compared to their
incremental sales. Moreover, the campaign reviews positively in generating sales by the
contribution of Nando's management, employee's, customer's and people of Portugal.
Consumer's value: The value of the customer's is helpful in measuring the client's lifetime value
in the Nando's product and services. As this restaurant has launched many items in April, with a
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target of spice junkies in market. In addition to this, the concept can be cleared by using formula
of the average sale which is achieved by an individual customer ( Liebl, 2018). And this is to be
multiplied with number of customer's purchase in a year and lastly it has to be multiplied with
retention time in a year for ordinary customer's.
Customer's lifetime value = ( average sale of an individual X customer purchased per year X
retention time per year )
Moreover, this helps in calculating the efforts of Nando's management contributed in increasing
the sale and also in increasing the consumer's in their restaurants which measures Nando's
success in Portugal.
Contribution of marketing to revenue: One of the method to measure the marketing success
can be in terms of it's contribution to the revenue. Overall revenue also considers all the new and
existing items like Churrasco BBQ marinade, PERi-PERi BBQ sauce, squeeze drink bottles with
new flavours and colours to it. In addition to this, the overall percentage of Nando's revenue can
be known through this method ( Abratt and Bendixen, 2018). Further, the revenue also evaluates
about management efforts of this company. By this way, the success is measured in terms to
increase the profit and productivity.
CONCLUSION
It can be concluded from the above report that Nando's has built the formal and advanced
structure in strategic marketing which helps in achieving higher performance level by promoting
new products like Churrasco BBQ marinade and PERi-PERi BBQ sauce. Moreover, the
marketing mix strategy adopted by this company analysed that price and people component
widely impacted on Nando's. Further, from the above project, it can be concluded that Customer
Based Brand Equity Model supports in constructing strong value and standard in the Portugal
market. As it helps in direct selling and communicating to consumer's which helps in their
growth of business. From Integrated Marketing Communications the report also analyses that it
helps in wider promotional activities of Nando's restaurant with colourful and creative dishes of
chicken and cuisines. Finally, consumer's lifetime value method is very effective in measuring
the success of the Nando's restaurant in Portugal.
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REFERENCES
Books and Journals
Abratt, R. and Bendixen, M., 2018. Strategic Marketing: Concepts and Cases. Routledge.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Coffie, S. and Blankson, C., 2018. Strategic prescriptive theories in the business context of an
emerging economy. Journal of Strategic Marketing 26(5) pp.373-384.
David, M.E., David, F.R. and David, F.R., 2017. The quantitative strategic planning matrix: a
new marketing tool. Journal of Strategic Marketing 25(4) pp.342-352.
Felix, R., Rauschnabel, P.A. and Hinsch, C., 2017. Elements of strategic social media marketing:
A holistic framework. Journal of Business Research 70 pp.118-126.
Foxall, G., 2014. Strategic Marketing Management (RLE Marketing). Routledge.
Liebl, F., 2018. What Is Strategic Marketing in an Innovation Society?. In Innovation Society
Today (pp. 165-181). Springer VS, Wiesbaden.
Proctor, T., 2014. Strategic marketing: an introduction. Routledge.
Subhan, Z. and et.al, 2015. Adoption of Strategic Marketing Practices among Indian
Manufacturers. Academy of Marketing Studies Journal 19(1) p.46.
Tomczak, T., Reinecke, S. and Kuss, A., 2018. Marketing Implementation and Management
Control. In Strategic Marketing (pp. 223-244). Springer Gabler, Wiesbaden.
West, D.C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive advantage.
Oxford University Press, USA.
Online
The marketing mix in marketing strategy, 2018. Available
Through:<https://www.marsdd.com/mars-library/the-marketing-mix-in-marketing-strategy-
product-price-place-and-promotion/>
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